# The Contract Act in 9 flashcards.

> Proposal, acceptance and consideration (s.2(a), (b), (d)); contract, essentials and competence (s.2(h), ss.10, 11); void, voidable and impossibility (s.2(g), (i), s.56). Plus free consent (s.14), damages (ss.73, 74) and the section 25 exceptions examiners love.

- Topic: Law study
- For: Law students
- A 11-slide carousel: https://failegal.site/media/the-contract-act-in-9-flashcards
- Published by FAI Legal on 2026-10-12

## Quick quiz. No consideration.

Guess first, then swipe for the answer.

- **A. No, there is no consideration**
- **B. Yes, it can be**
- **C. Only with two witnesses**

## Answer: B. Section 25(1).

The exception in the law.

> "An agreement made without consideration is void, unless it is expressed in writing and registered under the law for the time being in force for the registration of documents, and is made on account of natural love and affection between parties standing in a near relation to each other." (Contract Act, 1872 · Section 25(1))

## Making it. Cards 1 to 3.

How a promise is born.

- **Proposal** Showing willingness to do or not do something, to get the other's assent. (s.2(a))
- **Acceptance** Assent to the proposal. An accepted proposal becomes a promise. (s.2(b))
- **Consideration** Something done, held back or promised, at the promisor's desire. (s.2(d))

## Valid or not. Cards 4 to 6.

When the law enforces it.

- **Contract** An agreement enforceable by law. (s.2(h))
- **Essentials** Free consent, competent parties, lawful consideration and object. (s.10)
- **Competent** Age of majority, sound mind, not disqualified by law. (s.11)

## When it fails. Cards 7 to 9.

Void is not voidable.

- **Void** An agreement not enforceable by law. (s.2(g))
- **Voidable** Enforceable at the option of one party only. (s.2(i))
- **Impossible later** Becomes void when the act becomes impossible or unlawful. (s.56)

## Free consent.

Section 14.

- **Not caused by** Coercion (s.15), undue influence (s.16), fraud (s.17), misrepresentation (s.18) or mistake (ss.20 to 22).
- **The test** Consent is so caused when it would not have been given without it.

## Breach and damages.

Sections 73 and 74.

- **Natural loss** Loss arising in the usual course of things, or that both knew was likely (s.73).
- **Not remote** No compensation for remote and indirect loss (s.73).
- **Sum named** Reasonable compensation up to that sum, loss proved or not (s.74).

## Exam traps.

All from section 25.

- **Low price** Not void just because consideration is inadequate (Expl. 2).
- **Time-barred debt** A written, signed promise to pay it is a contract (s.25(3)).
- **Past help** A promise to pay someone who already helped you voluntarily is a contract (s.25(2)).

## Revise with FAI.

Ask FAI in your own words. It answers with the exact section and the leading judgments.

- **Difference between a void agreement and a voidable contract, with cases.**
- **When is an agreement without consideration still valid?**

## What this does not mean

- These cards are short revision notes on the Contract Act, 1872. They are not the full text of each section.
- Section 25(1) does not save every agreement made without consideration. It must be in writing, registered, and made out of natural love and affection between parties in a near relation.
- A voidable contract is not the same as a void agreement. A voidable one is enforceable at the option of one party only (s.2(i)).

## Questions people ask

### What is a contract under the Contract Act 1872 in Pakistan?

An agreement enforceable by law is a contract (s.2(h)). It needs free consent, competent parties, and a lawful consideration and object (s.10).

### Is an agreement without consideration void?

Usually yes, but section 25 has exceptions. A written, registered agreement made out of natural love and affection between near relations is valid (s.25(1)), and so is a promise to pay someone who already helped you voluntarily (s.25(2)).

### What is the difference between a void agreement and a voidable contract?

A void agreement is not enforceable by law (s.2(g)). A voidable contract is enforceable at the option of one party only (s.2(i)).

### Who is competent to contract in Pakistan?

A person who has reached the age of majority, is of sound mind, and is not disqualified by law (s.11).

### What damages can be claimed for breach of contract?

Compensation for loss arising in the usual course of things, or loss both sides knew was likely, but not for remote and indirect loss (s.73). Where a sum is named, reasonable compensation up to that sum can be given, whether or not loss is proved (s.74).

## Sources

- Contract Act, 1872 · Section 25(1): Agreement without consideration void, unless

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