Assignment Agreement Without Consideration
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FAQ
In simple words, no consideration no contract. Hence, you can enforce a contract only if there is a consideration. While considerations are integral to a contract, the Indian Contract Act, 1872 has listed some exceptions whereby an agreement made without consideration will not be void.
If there is no consideration for one or more parties, then it casts a shadow over the legitimacy of the contract. In other words, each party should be able to answer the question of why they entered into the agreement. Those who are unable to answer this question may not have been given proper consideration.
The Indian Contract Act of 1872 states that for any contract to be legally binding, consideration should be provided. An agreement without consideration is not considered valid.
An assignment without consideration is valid when: there has been a delivery; the assignment is in writing; or. the assignment is by way of gift.
Lack of consideration means that one of the parties to a contract is not obligated in any way, while the other party holds all obligation to act. Generally, courts will not interfere with parties to a contract.