ex nudo pacto non oritur actio

Ex Nudo Pacto Non Oritur Actio

1. Meaning of the Maxim

The phrase "Ex nudo pacto non oritur actio" is Latin and translates to:

"No action arises from a bare or naked agreement."

In simple terms, this means that a mere agreement or promise without consideration cannot be enforced in a court of law.

It is a fundamental principle of contract law that consideration is essential for creating a legally binding contract.

2. Explanation

Bare or naked promise refers to an agreement or promise without any consideration (something of value exchanged between the parties).

If there is no consideration, the promise is not enforceable, and the promisor cannot be compelled to perform.

This maxim supports the doctrine of consideration which is a cornerstone of the Indian Contract Act, 1872 and common law systems.

3. Legal Context in Indian Law

Under Section 25 of the Indian Contract Act, 1872:

"An agreement made without consideration is void, unless it is in writing and registered and is made on account of natural love and affection between parties standing in a near relation to each other."

This section enshrines the principle expressed by ex nudo pacto non oritur actio.

Therefore, no suit or legal action can arise from an agreement unless there is valid consideration.

4. Illustration with an Example

If A promises to give B ₹10,000 without receiving anything in return, B cannot sue A to enforce the promise.

Because A’s promise is a naked promise with no consideration from B, it is not legally enforceable.

5. Exceptions to the Rule

Written and registered agreements made on account of natural love and affection between close relations.

Promise to pay a debt barred by limitation (Section 18).

Completed gifts (grants).

Promise made out of past consideration (under some circumstances).

6. Case Law

Chinnaya v. Ramayya (1882) 7 Mad 115

In this case, the Madras High Court discussed the necessity of consideration for enforceability of agreements.

The court emphasized that a mere promise without consideration does not create a binding contract.

The maxim ex nudo pacto non oritur actio was applied to hold that no legal action can be maintained on a promise made without consideration.

Carlill v. Carbolic Smoke Ball Co. (1893) 1 QB 256 (English case)

Although an English case, it illustrates that an offer made with a promise to pay a reward is enforceable only when the offeree performs the conditions, thereby providing consideration by acting on the offer.

This supports the maxim that without consideration, there is no action.

7. Summary Table

AspectExplanation
MeaningNo legal action arises from a bare promise
PrincipleConsideration is necessary for enforceability
Legal BasisSection 25, Indian Contract Act, 1872
ExceptionsNatural love and affection, written contracts, etc.
Key CaseChinnaya v. Ramayya (1882)

8. Conclusion

The maxim ex nudo pacto non oritur actio reinforces the essential role of consideration in contract law by stating that a bare promise, without something in return, cannot be enforced. This protects parties from being legally bound by promises where no reciprocal obligation exists.

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