ex nudo pacto non oritur actio

What is ex nudo pacto non oritur actio?

“Ex nudo pacto non oritur actio” is a Latin maxim that translates to “a bare promise without consideration cannot be enforced.” Ex nudo pacto non oritur actio means that a contract without consideration, i.e., something of value promised in exchange for something else, is not valid and cannot be enforced by law. 

In simpler terms, if one party promises to do something for another party without receiving anything in return, that promise is not legally binding, and no legal action can arise from it. The concept of consideration is essential in contract law, and this maxim reflects that principle.

Consideration under Contracts

The Indian Contract Act, 1872, defines consideration as an act or abstinence from an act done at the desire of the promisor. The promisee or any other person must have done or abstained from doing something or promised to do or abstain from doing something. This act or abstinence is called a consideration for the promise. It must be beneficial to the promisor or detrimental to the promisee or any other person.

The concept of consideration is essential for a valid contract, and the absence of consideration makes the contract null and void. However, there are exceptions to this rule, and a contract without consideration can be valid and enforceable in certain circumstances. Section 25 of the Indian Contract Act, 1872, provides for these exceptions.

Exceptions to Valid Consideration

The first exception is for natural gifts given to close relatives. Such gifts should be given in writing and registered as given out of natural love and affection.

The second exception is for time-barred debt, which should be given in writing.

The third exception is for compensation for past voluntary services rendered.

The fourth exception is for completed gifts.

It is essential to note that these exceptions do not apply to commercial transactions, and consideration must be present in such cases.

The concept of consideration is essential for a valid contract, and the Latin maxim “Ex nudo pacto non oritur actio” emphasizes its importance. A contract without consideration is not enforceable by law, and the absence of consideration renders the contract null and void. 

Case laws on ex nudo pacto non oritur actio

In the case of S. Parameswari v. Balasubramanian, the court referenced the well-known Latin maxim “Ex nudo pacto non oritur actio,” which means that a contract without consideration cannot give rise to legal action.

Similarly, in Mrs. Suseela & Others v. P.M. Veeraragavan & Ors., the Madras High Court interpreted the maxim as meaning that no legal liability can arise from a promise that lacks consideration and is not made with particular solemnity.

In White v. Bluett, Bluett was sued by the executors of his father for an outstanding debt, but claimed that his father had promised to discharge him from it in exchange for him to stop complaining about property distribution. The court held that the cessation of complaints had no economic value and therefore did not constitute consideration for the promise, making the debt enforceable at law.

Conclusion

The Latin maxim “Ex nudo pacto non oritur actio” serves as an essential principle in contract law. It signifies that a contract without consideration is not enforceable in law, as it lacks the essential element of mutual benefit. 

The maxim has been interpreted by courts worldwide and has stood the test of time. It highlights the significance of consideration in a contract and prevents the exploitation of parties in a contractual relationship.