IGNOU BCOC 133 2025 - "Insufficiency of consideration is immaterial, but a valid

Question

"Insufficiency of consideration is immaterial, but a valid contract must be supported by lawful and real consideration." Comment.

17 Nov 2025

Answer :

Word Count : 483

In the realm of Business Law, the concept of consideration plays a central role in determining the validity of a contract. Consideration refers to something of value, such as money, goods, services, or a promise, that is exchanged between parties entering into a contract. It acts as the inducement or motive that binds the parties to their promises. The law requires that a contract must be supported by consideration; however, it does not require that the consideration be adequate in terms of value. This is what is meant by the principle that “insufficiency of consideration is immaterial.” This principle has its roots in the idea that courts are not in a position to judge the fairness

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