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Section 19: When a Contract Without Consideration is Valid

19.Effect of lack of or failure of consideration

(1)An agreement made without consideration is void except where the agreement—

(a)is expressed in writing and registered under the Registration of Documents Act and is made on account of natural love and affection between parties standing in a near relation to each other;

(b)is a promise to compensate, wholly or in part, a person who has already voluntarily done something for the promisor or something which the promisor was legally compellable to do; or

(c)is a promise, made in writing and signed by the person responsible for it or by the agent of that person, to pay wholly or in part a debt for which a creditor may have enforced payment but is restricted by the Limitation Act.

(2)Nothing in this section shall affect the validity of any gift given by a donor to a donee.

(3)An agreement to which the consent of a promisor is freely given is not void merely because the consideration is inadequate.

(4)Notwithstanding subsection (3), the inadequacy of consideration may be taken into account by the court in determining whether the consent of a promisor was freely given.

Plain English Summary

You cannot enforce most agreements that lack a valuable exchange (consideration). However, the law provides three exceptions: a written and registered...

AI-generated, for reference only.

🔍Search Tips
  • • Search by keyword: "land", "tax", "arrest"
  • • Use exact phrases: "land commission"
  • • Enter citations: 45, 45(3)(a), 45:3:a
  • • Press / to search, Esc to close

Searching within Contracts Act. Faster results.