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Inadequacy Agreement

Where both parties set a deadline for the repayment of the loan/debt that is to expire, the Statute of Limitation does not, in such cases, recognize the debt within the meaning of section 18 of the Statute of Limitation. In addition, the offer of services that has not been accepted by one of the parties is not considered a commitment under Section 25 (3) of the ICA. [15] The most common form of leniency is leniency to bring legal action within a reasonable time. This promise to confirm it can be expressed or implied from the circumstances. Sometimes it is very difficult to conceive from the fact that it is an indulgence agreement (which is not a good consideration until the promisor`s request is supported) or actual indulgence. Therefore, in the case of Bittan Bibi vs. Kuntu Lal, it was made clear that the promise of leniency must be made at the request of the promisor. The inadequacy of the consideration is considered to be the control of the freedom of approval. For example- A agrees to sell his property worth Rs 1 crore to B for the Rs 10,000.

disputes that his authorization to sell the property was not granted freely. A party wishing to set aside the transaction on the basis of the insufficient counterparty must show that it could not understand or that it was subject to some taxation. If the Tribunal is satisfied that the contract was entered into freely, it would be clear whether the consideration was reasonable or not. This exception only occurs in cases where a third party is held liable for the debt, and it does not extend to situations in which there is a commitment to repay the debts of a third party. [11] In addition, the agreement of a Hindu son to pay his father`s debts can only be obtained against the common family property he inherited. [12] However, if the agreement were to be presented out of affection and be recorded in writing, it would be a valid contract. When a man formed an agreement with his wife and recorded that he was going to give her his earrings, it was established that there was a valid agreement. [4] A debtor may enter into a written agreement under Section 25, paragraph 3, regarding the payment of a portion of the total debt, and an action may arise in such cases if there is a written commitment for payment.

It is clear that the counterparty can go from a third party, but it cannot complain about its own agreement.

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