Inadequacy of consideration does not make the contract

Under the Indian Contract Act, 1872, consideration is one of the essential elements of a valid contract. However, Section 25 of the Act clarifies that inadequacy of consideration alone does not render a contract void or voidable.

Consideration must be something of value in the eyes of law, but the law does not require that it be adequate, only that it be lawful.

Exception arises only if the consideration is so inadequate that it suggests coercion, fraud, or undue influence — in which case the contract may become voidable at the option of the aggrieved party.

Hence, inadequacy of consideration alone does not affect the validity of a contract, making it neither void nor voidable.