Ajay wanted to purchase a bike from Naveen. He wanted to buy the bike for an amount of Rs.15,000, which was only 1/4the of its actual price. Naveen agreed to sell his bike to Ajay at the above stated price, though the bike was a new one.

With reference to this situation answer the following:

a.Is the consideration valid and adequate in the above said sale?

b.Whether the statement 'All contracts are agreements, but all agreements are not contracts' is true