Q.Under Section 25 of the Indian Contract Act, 1872, an agreement made without consideration is:
(A) Always void, with no exception whatsoever
(B) Void as a general rule, except in specific situations the Act itself recognises, such as a written and registered agreement made out of natural love and affection between near relations
(C) Voidable at the option of either party
(D) Illegal and punishable

Section 25's opening rule is 'no consideration, no contract,' but it then lists exactly three statutory exceptions.

Section 25 states that an agreement made without consideration is void, UNLESS it falls under one of three named exceptions: (1) a written and registered agreement out of natural love and affection between near relations; (2) a promise to compensate a person for something already voluntarily done for the promisor; and (3) a written promise to pay a time-barred debt.

Option-by-option analysis:

• (A) Incorrect — the rule is not absolute; Section 25 itself carves out exceptions.
• (B) Correct — this is the natural-love-and-affection exception, exactly as Section 25(1) states it. …