Principle: A contract which is duly supported by real and lawful consideration is validnotwithstanding the fact that the consideration is inadequate. The quantum of consideration is forthe parties to decide at the time of making a contract, and not for the courts (to decide) when the contract is sought to be enforced. An agreement to which the consent of the promisor is freelygiven is not void merely because the consideration is inadequate; but the inadequacy of theconsideration may be taken into account by the Court in determining the question whether theconsent of the promisor was freely given Facts: 'A' agrees to sell his mobile phone worth t 20,000/- for 100/- only to 'B'. A's consent isfreely given.Which of the following derivations is CORRECT?

• A. There is a contract between 'A' and 'B'
• B. There is no contract between 'A' and 'B' because consideration is not adequate
• C. There is no contract between 'A' and 'B' because a mobile phone worth 20,000/- cannot bensold for just 100/-
• D. None of the above