Explanation:

- Inadequacy of consideration means the value exchanged in a contract is not equal or proportionate, but it is still recognized by law.

- According to the Indian Contract Act, 1872 (and similar common law principles), mere inadequacy of consideration does not make a contract void or voidable if it is given freely.

- Contracts are only void if their consideration is unlawful, impossible, or forbidden by law; inadequacy alone isn’t enough.

- Void contracts have no legal effect from the beginning.

- Voidable contracts can be enforced or rescinded at the option of one party, but inadequacy of consideration is not a ground.

- Option:3, Valid is the correct answer, since inadequacy of consideration does not affect the validity of the contract.