All Exams >
CA Foundation >
Business Laws for CA Foundation >
All Questions
All questions of Unit 2: Consideration for CA Foundation Exam
Which of the following is not an exception to the rule, No consideration, No contract: - a)Natural love and affection
- b)Compensation for involuntary services
- c)Completed gift
- d)Agency
Correct answer is option 'B'. Can you explain this answer?
Which of the following is not an exception to the rule, No consideration, No contract:
a)
Natural love and affection
b)
Compensation for involuntary services
c)
Completed gift
d)
Agency
|
Ankita Mukherjee answered |
Exception to the Rule "No Consideration, No Contract"
Introduction:
The basic principle of a contract is that it is an agreement between two or more parties that creates legally binding obligations. One of the essential elements of a contract is consideration, which refers to something of value that is given in exchange for the promise of the other party. However, there are certain exceptions to this rule. Let's discuss them in detail.
Natural Love and Affection:
The first exception to the rule is natural love and affection. This means that a contract made out of natural love and affection does not require consideration. Examples of such contracts are agreements between family members, such as parents and children or spouses.
Completed Gift:
The second exception is a completed gift. A completed gift is a transfer of property without any consideration. Once the gift is given, the donor cannot take it back. The recipient becomes the rightful owner of the gift.
Agency:
The third exception is agency. An agent can enter into a contract on behalf of the principal without receiving any consideration. The principal is bound by the contract entered into by the agent.
Compensation for Involuntary Services:
The last exception is compensation for involuntary services. If a person performs a service without any obligation or request, they are not entitled to compensation. However, if the service was performed voluntarily, the person who benefited from the service may offer compensation as a token of gratitude.
Conclusion:
In conclusion, the rule "No Consideration, No Contract" is a fundamental principle of contract law. However, there are certain exceptions to this rule. Natural love and affection, completed gifts, agency, and compensation for involuntary services are all exceptions to the rule. It is important to understand these exceptions to ensure that contracts are enforceable and legally binding.
Introduction:
The basic principle of a contract is that it is an agreement between two or more parties that creates legally binding obligations. One of the essential elements of a contract is consideration, which refers to something of value that is given in exchange for the promise of the other party. However, there are certain exceptions to this rule. Let's discuss them in detail.
Natural Love and Affection:
The first exception to the rule is natural love and affection. This means that a contract made out of natural love and affection does not require consideration. Examples of such contracts are agreements between family members, such as parents and children or spouses.
Completed Gift:
The second exception is a completed gift. A completed gift is a transfer of property without any consideration. Once the gift is given, the donor cannot take it back. The recipient becomes the rightful owner of the gift.
Agency:
The third exception is agency. An agent can enter into a contract on behalf of the principal without receiving any consideration. The principal is bound by the contract entered into by the agent.
Compensation for Involuntary Services:
The last exception is compensation for involuntary services. If a person performs a service without any obligation or request, they are not entitled to compensation. However, if the service was performed voluntarily, the person who benefited from the service may offer compensation as a token of gratitude.
Conclusion:
In conclusion, the rule "No Consideration, No Contract" is a fundamental principle of contract law. However, there are certain exceptions to this rule. Natural love and affection, completed gifts, agency, and compensation for involuntary services are all exceptions to the rule. It is important to understand these exceptions to ensure that contracts are enforceable and legally binding.
Contract created to restrict the rights related to legal proceedings is- a)Void
- b)Valid
- c)Illegal
- d)None.
Correct answer is option 'A'. Can you explain this answer?
Contract created to restrict the rights related to legal proceedings is
a)
Void
b)
Valid
c)
Illegal
d)
None.
|
Deepak Kumar answered |
Void means not applicable. acc to Constitution of india no person can resist the right of other person by making contact with him so these type of contract is void in nature
Which of the following is Void Contract?- a)Agreement the meaning of which is certain
- b)Agreement with unlawful consideration
- c)Agreements with minor
- d)Agreement with inadequate consideration, if inadequate consideration, if inadequacy is not supported by free consent
Correct answer is option 'B'. Can you explain this answer?
Which of the following is Void Contract?
a)
Agreement the meaning of which is certain
b)
Agreement with unlawful consideration
c)
Agreements with minor
d)
Agreement with inadequate consideration, if inadequate consideration, if inadequacy is not supported by free consent
|
Alok Mehta answered |
If any part of a single consideration for one or more objects, or any one or any part of any one of several considerations for a single object is unlawful, the agreement is void.
In case of completed gifts, consideration is - a)Not required.
- b)Equal to the amount of gift.
- c)Less than the amount of gift.
- d)More than the amount of gift.
Correct answer is option 'A'. Can you explain this answer?
In case of completed gifts, consideration is
a)
Not required.
b)
Equal to the amount of gift.
c)
Less than the amount of gift.
d)
More than the amount of gift.
|
|
Niharika Chavan answered |
Completed Gifts and Consideration
Definition of Completed Gifts
A completed gift is a gift that has been given and received without any conditions attached to it. The ownership and possession of the gift have been transferred from the donor to the donee.
Definition of Consideration
Consideration refers to the legal value given in exchange for a promise or performance of a contract. It can be a monetary payment or something else of value.
Consideration in Completed Gifts
In the case of completed gifts, consideration is not required because the gift has already been given and received without any conditions attached to it. The donor has voluntarily transferred the ownership and possession of the gift to the donee without any expectation of receiving anything in return.
Examples of Completed Gifts
Examples of completed gifts include:
- A parent giving a child a cash gift for their birthday
- A person donating money to a charity
- A grandparent giving a grandchild a piece of jewelry as a gift
In all these cases, the gifts are given and received without any conditions attached to them and without any expectation of receiving anything in return.
Conclusion
In conclusion, consideration is not required in the case of completed gifts because the gift has already been given and received without any conditions attached to it. The donor has voluntarily transferred the ownership and possession of the gift to the donee without any expectation of receiving anything in return.
Definition of Completed Gifts
A completed gift is a gift that has been given and received without any conditions attached to it. The ownership and possession of the gift have been transferred from the donor to the donee.
Definition of Consideration
Consideration refers to the legal value given in exchange for a promise or performance of a contract. It can be a monetary payment or something else of value.
Consideration in Completed Gifts
In the case of completed gifts, consideration is not required because the gift has already been given and received without any conditions attached to it. The donor has voluntarily transferred the ownership and possession of the gift to the donee without any expectation of receiving anything in return.
Examples of Completed Gifts
Examples of completed gifts include:
- A parent giving a child a cash gift for their birthday
- A person donating money to a charity
- A grandparent giving a grandchild a piece of jewelry as a gift
In all these cases, the gifts are given and received without any conditions attached to them and without any expectation of receiving anything in return.
Conclusion
In conclusion, consideration is not required in the case of completed gifts because the gift has already been given and received without any conditions attached to it. The donor has voluntarily transferred the ownership and possession of the gift to the donee without any expectation of receiving anything in return.
Contract created to restrict the rights related to legal proceedings is- a)Void
- b)Valid
- c)Illegal
- d)None.
Correct answer is option 'A'. Can you explain this answer?
Contract created to restrict the rights related to legal proceedings is
a)
Void
b)
Valid
c)
Illegal
d)
None.
|
Rajveer Jain answered |
Explanation:
A contract created to restrict the rights related to legal proceedings is considered void.
Reason:
The Indian Contract Act, 1872 provides that any agreement that restricts a person's right to approach the court for legal redressal is considered void. Such agreements are against public policy and can't be enforced in a court of law.
For example, if a person has signed an agreement with their employer stating that they cannot approach the court for any legal dispute related to their employment, it is considered void. The person has the right to approach the court for legal redressal if they feel their rights have been violated.
Conclusion:
In conclusion, any contract that restricts a person's right to approach the court for legal redressal is deemed void. Such agreements are against public policy, and the law prohibits them.
A contract created to restrict the rights related to legal proceedings is considered void.
Reason:
The Indian Contract Act, 1872 provides that any agreement that restricts a person's right to approach the court for legal redressal is considered void. Such agreements are against public policy and can't be enforced in a court of law.
For example, if a person has signed an agreement with their employer stating that they cannot approach the court for any legal dispute related to their employment, it is considered void. The person has the right to approach the court for legal redressal if they feel their rights have been violated.
Conclusion:
In conclusion, any contract that restricts a person's right to approach the court for legal redressal is deemed void. Such agreements are against public policy, and the law prohibits them.
Which of the following statement is true :- a)Consideration must be adequate
- b)Consideration must result in a benefit to both the parties
- c)Consideration must be something, which a promisor is not already bound to do
- d)Past consideration is no consideration in India
Correct answer is option 'C'. Can you explain this answer?
Which of the following statement is true :
a)
Consideration must be adequate
b)
Consideration must result in a benefit to both the parties
c)
Consideration must be something, which a promisor is not already bound to do
d)
Past consideration is no consideration in India
|
Kavita Joshi answered |
Consideration must be something, which a promisor is not already bound to do
Description: The act constituting consideration must be something which the promisor is not already bound to do because a promise to do what a promisor is already bound to do adds nothing to the existing obligation.
Rohan promises to make a gift of Rs. 10,000 towards the repairs of a temple. The trustees of the temple on the faith of his promise incurs liabilities. Rohan does not pay. Can the trustees recover the promised amount from Rohan ?- a)The trustee cannot recover anything from Rohan
- b)The trustee can recover to the extent of liabilities from Rohan
- c)The trustee can recover Rs. 10,000 from Rohan
- d)None
Correct answer is option 'B'. Can you explain this answer?
Rohan promises to make a gift of Rs. 10,000 towards the repairs of a temple. The trustees of the temple on the faith of his promise incurs liabilities. Rohan does not pay. Can the trustees recover the promised amount from Rohan ?
a)
The trustee cannot recover anything from Rohan
b)
The trustee can recover to the extent of liabilities from Rohan
c)
The trustee can recover Rs. 10,000 from Rohan
d)
None
|
|
Arun Khanna answered |
(B) The trustee can recover to the extent of liabilities from Rohan
Description: The trustees can recover to the extent of liabilities from Rohan and not the entire Rs. 10,000. If trustees wouldn't have incurred any liability on account of Rohan then Rohan was not at all responsible to compensate the trustees.
A who was badly in need of money offered to sell his piano worth Rs. 8,500 to B for Rs. 5,000. B refused to buy. A gradually lowered his price until Rs. 2500 was reached, which B accepted. Before the piano was delivered A received an offer of a larger sum from X and he refused to carry out the contract with B claiming that the consideration was inadequate. Is a liable to pay damages to B for failure to carry out his part of contract?- a)No, as the consideration was inadequate A cancelled the contract
- b)Yes, A is liable to pay damages to B for failure to carry out his part of the contract
- c)No, as the contract was made due to Undue Influence
- d)Any of the above
Correct answer is option 'B'. Can you explain this answer?
A who was badly in need of money offered to sell his piano worth Rs. 8,500 to B for Rs. 5,000. B refused to buy. A gradually lowered his price until Rs. 2500 was reached, which B accepted. Before the piano was delivered A received an offer of a larger sum from X and he refused to carry out the contract with B claiming that the consideration was inadequate. Is a liable to pay damages to B for failure to carry out his part of contract?
a)
No, as the consideration was inadequate A cancelled the contract
b)
Yes, A is liable to pay damages to B for failure to carry out his part of the contract
c)
No, as the contract was made due to Undue Influence
d)
Any of the above
|
|
Siddharth Sen answered |
Explanation:
The given scenario involves a contract between A and B for the sale of a piano. A offered to sell his piano to B for Rs. 5,000, but B refused. A gradually lowered the price until B accepted the offer of Rs. 2,500. However, before the piano was delivered, A received a better offer from X and refused to carry out the contract with B.
Consideration:
One of the essential elements of a contract is consideration, which refers to something of value that is exchanged between the parties. In this case, the consideration was the sale of the piano for Rs. 2,500. This was a valid consideration, and both parties agreed to it.
Breach of Contract:
A breached the contract by refusing to carry out his part of the agreement with B. A claimed that the consideration was inadequate, but this is not a valid reason to cancel the contract. A had already agreed to the price of Rs. 2,500, and B had accepted the offer. A cannot simply back out of the agreement because he received a better offer.
Damages:
B can claim damages from A for the breach of the contract. Damages refer to the compensation that B is entitled to for the losses suffered due to A's failure to carry out his part of the agreement. In this case, B can claim the difference between the agreed-upon price of Rs. 2,500 and the cost of purchasing a similar piano from another seller.
Conclusion:
Therefore, the correct answer is option B. A is liable to pay damages to B for his failure to carry out his part of the contract. The consideration was valid, and A cannot back out of the agreement simply because he received a better offer.
The given scenario involves a contract between A and B for the sale of a piano. A offered to sell his piano to B for Rs. 5,000, but B refused. A gradually lowered the price until B accepted the offer of Rs. 2,500. However, before the piano was delivered, A received a better offer from X and refused to carry out the contract with B.
Consideration:
One of the essential elements of a contract is consideration, which refers to something of value that is exchanged between the parties. In this case, the consideration was the sale of the piano for Rs. 2,500. This was a valid consideration, and both parties agreed to it.
Breach of Contract:
A breached the contract by refusing to carry out his part of the agreement with B. A claimed that the consideration was inadequate, but this is not a valid reason to cancel the contract. A had already agreed to the price of Rs. 2,500, and B had accepted the offer. A cannot simply back out of the agreement because he received a better offer.
Damages:
B can claim damages from A for the breach of the contract. Damages refer to the compensation that B is entitled to for the losses suffered due to A's failure to carry out his part of the agreement. In this case, B can claim the difference between the agreed-upon price of Rs. 2,500 and the cost of purchasing a similar piano from another seller.
Conclusion:
Therefore, the correct answer is option B. A is liable to pay damages to B for his failure to carry out his part of the contract. The consideration was valid, and A cannot back out of the agreement simply because he received a better offer.
Privity of Contract is subject to the exception:- a)Where a trust or charge is created
- b)where payment is made to a third party
- c)Where payment is made by a third party
- d)None of these
Correct answer is option 'A'. Can you explain this answer?
Privity of Contract is subject to the exception:
a)
Where a trust or charge is created
b)
where payment is made to a third party
c)
Where payment is made by a third party
d)
None of these
|
Jayant Mishra answered |
Privity is a relationship between parties to a contract or promise. Privity of contract is required in most cases in order to file a lawsuit that is based on a contract. A failure to have privity will usually result in the inability to sue; however, there are some exceptions to this rule.
The inadequacy of consideration will be taken into account by a court of law: - a)Always at the discretion of the court
- b)When the promisor performs his promise
- c)When absence of free consent is pleaded in the formation of the contract
- d)When the promisor expresses his desire to get maximum return for his promise
Correct answer is option 'C'. Can you explain this answer?
The inadequacy of consideration will be taken into account by a court of law:
a)
Always at the discretion of the court
b)
When the promisor performs his promise
c)
When absence of free consent is pleaded in the formation of the contract
d)
When the promisor expresses his desire to get maximum return for his promise
|
Nandini Iyer answered |
According to explanation 2 of Section 25, an agreement to which the consent of the promisor is freely given is not void merely because the consideration is inadequate; but the inadequacy of the consideration may be taken into account by the court in determining the question whether the consent of the promisor was freely given.
In case of completed gifts, consideration is - a)Not required.
- b)Equal to the amount of gift.
- c)Less than the amount of gift.
- d)More than the amount of gift.
Correct answer is option 'A'. Can you explain this answer?
In case of completed gifts, consideration is
a)
Not required.
b)
Equal to the amount of gift.
c)
Less than the amount of gift.
d)
More than the amount of gift.
|
|
Maheshwar Goyal answered |
Explanation:
In contract law, consideration is an essential element for the formation of a valid contract. Consideration refers to something of value that is given by one party to another in exchange for a promise or performance. It is the price that is paid for the promise.
However, when it comes to completed gifts, consideration is not required. A completed gift is a transfer of property from one person (the donor) to another (the donee) without any expectation of receiving something in return. In other words, it is a voluntary transfer of property without any consideration.
There are certain requirements for a valid completed gift, including:
1. Intent: The donor must have the intention to make a gift. There should be a clear and unambiguous intention to transfer ownership of the property to the donee.
2. Delivery: There must be an actual or symbolic delivery of the gift. The donor must physically or symbolically transfer the property to the donee. For example, if the gift is a physical object, the donor must physically hand over the object to the donee.
3. Acceptance: The donee must accept the gift. Acceptance can be expressed or implied. It is important to note that acceptance is not required for a completed gift if the gift is irrevocable.
In the case of completed gifts, there is no exchange of consideration between the donor and the donee. The donor voluntarily transfers ownership of the property to the donee without any expectation of receiving something in return. Therefore, consideration is not required for a completed gift.
In conclusion, in the case of completed gifts, consideration is not required. It is a voluntary transfer of property without any expectation of receiving something in return. The absence of consideration does not affect the validity of the completed gift.
In contract law, consideration is an essential element for the formation of a valid contract. Consideration refers to something of value that is given by one party to another in exchange for a promise or performance. It is the price that is paid for the promise.
However, when it comes to completed gifts, consideration is not required. A completed gift is a transfer of property from one person (the donor) to another (the donee) without any expectation of receiving something in return. In other words, it is a voluntary transfer of property without any consideration.
There are certain requirements for a valid completed gift, including:
1. Intent: The donor must have the intention to make a gift. There should be a clear and unambiguous intention to transfer ownership of the property to the donee.
2. Delivery: There must be an actual or symbolic delivery of the gift. The donor must physically or symbolically transfer the property to the donee. For example, if the gift is a physical object, the donor must physically hand over the object to the donee.
3. Acceptance: The donee must accept the gift. Acceptance can be expressed or implied. It is important to note that acceptance is not required for a completed gift if the gift is irrevocable.
In the case of completed gifts, there is no exchange of consideration between the donor and the donee. The donor voluntarily transfers ownership of the property to the donee without any expectation of receiving something in return. Therefore, consideration is not required for a completed gift.
In conclusion, in the case of completed gifts, consideration is not required. It is a voluntary transfer of property without any expectation of receiving something in return. The absence of consideration does not affect the validity of the completed gift.
Which of the following is not the essentials of a valid consideration?- a)Consideration must be at the desire of the promisor
- b)Consideration may move from promise or any other person
- c)Consideration may be past, present or future
- d)Consideration must be adequate
Correct answer is option 'D'. Can you explain this answer?
Which of the following is not the essentials of a valid consideration?
a)
Consideration must be at the desire of the promisor
b)
Consideration may move from promise or any other person
c)
Consideration may be past, present or future
d)
Consideration must be adequate
|
Gunjan Agarwal answered |
Consideration must be adequate it is not an essential for a valid consideration bcoz there can be a situation were consideration is not adequate but if its accepted the contract is assumed to valid nd thus it ends then nd there
An agreement without consideration is case of natural love and affection is:- a)Valid if it is written and registered.
- b)Invalid even if it is written & registered
- c)Valid even if it is written/oral
- d)Any of the above.
Correct answer is option 'A'. Can you explain this answer?
An agreement without consideration is case of natural love and affection is:
a)
Valid if it is written and registered.
b)
Invalid even if it is written & registered
c)
Valid even if it is written/oral
d)
Any of the above.
|
|
Arjun Singhania answered |
Agreement without consideration, void, unless it is in writing and registered or is a promise to compensate for something done or is a promise to pay a debt barred by limitation law. (b) A, for natural love and affection, promise to give his son B, Rs.
Which One of the following statements is true.- a)Consideration must move at the desire of the promisor.
- b)Consideration has to be complete and lawful.
- c)An Agreement with Out Consideration is Valid
- d)Past Consideration is no Consideration
Correct answer is option 'A'. Can you explain this answer?
Which One of the following statements is true.
a)
Consideration must move at the desire of the promisor.
b)
Consideration has to be complete and lawful.
c)
An Agreement with Out Consideration is Valid
d)
Past Consideration is no Consideration
|
|
Mahesh Chakraborty answered |
Explanation:
Consideration is an essential element of a valid contract. It is the price paid by one party for the promise of the other party. It can be in the form of money, goods, services, or an act or forbearance to act. Here, option 'A' is the correct answer, and the explanation is as follows:
Consideration must move at the desire of the promisor:
This means that consideration must be given in exchange for the promise made by the promisor. It must be done at the promisor's request or desire. The consideration must be given voluntarily by the promisee, and it should not be coerced or forced upon the promisee.
Consideration must be lawful:
Consideration must be legal and not against the law or public policy. It must not involve any illegal activity or be against the interest of the public. If the consideration is unlawful, then the contract will be void.
An agreement with no consideration is invalid:
An agreement without consideration is not valid, as it lacks one of the essential elements of a contract. There must be a promise made by both parties and an exchange of consideration for the contract to be valid.
Past consideration is no consideration:
Past consideration is not considered as valid consideration. It means consideration that has already been given before the promise was made. If the promise is made after the act has been performed, it is not valid consideration.
In conclusion, consideration is an essential element of a valid contract. It must be given at the desire of the promisor and be lawful and complete. An agreement without consideration is invalid, and past consideration is not considered valid.
Consideration is an essential element of a valid contract. It is the price paid by one party for the promise of the other party. It can be in the form of money, goods, services, or an act or forbearance to act. Here, option 'A' is the correct answer, and the explanation is as follows:
Consideration must move at the desire of the promisor:
This means that consideration must be given in exchange for the promise made by the promisor. It must be done at the promisor's request or desire. The consideration must be given voluntarily by the promisee, and it should not be coerced or forced upon the promisee.
Consideration must be lawful:
Consideration must be legal and not against the law or public policy. It must not involve any illegal activity or be against the interest of the public. If the consideration is unlawful, then the contract will be void.
An agreement with no consideration is invalid:
An agreement without consideration is not valid, as it lacks one of the essential elements of a contract. There must be a promise made by both parties and an exchange of consideration for the contract to be valid.
Past consideration is no consideration:
Past consideration is not considered as valid consideration. It means consideration that has already been given before the promise was made. If the promise is made after the act has been performed, it is not valid consideration.
In conclusion, consideration is an essential element of a valid contract. It must be given at the desire of the promisor and be lawful and complete. An agreement without consideration is invalid, and past consideration is not considered valid.
X and Y enter into an agreement to share the profits of the business Carried on by both of them: This agreement is ________.- a)Valid
- b)Void
- c)Voidable
- d)Party valid
Correct answer is option 'A'. Can you explain this answer?
X and Y enter into an agreement to share the profits of the business Carried on by both of them: This agreement is ________.
a)
Valid
b)
Void
c)
Voidable
d)
Party valid
|
|
Srikanta Pal answered |
Hi I am srikanta Pal . yes its right answer A because ... if X.& Y two partners ...there's. accurate capital is =X&Y and it is a valid .. not a party valid or etc
There can be a stranger to a - a)Contract
- b)Promise
- c)Agreement
- d)Consideration
Correct answer is option 'D'. Can you explain this answer?
There can be a stranger to a
a)
Contract
b)
Promise
c)
Agreement
d)
Consideration
|
|
Nitin Kumar answered |
Consideration in Contracts:
Consideration is a vital element in the formation of a contract. It refers to something of value that is exchanged between the parties to a contract. Without consideration, a contract may not be considered valid.
Explanation:
Consideration is necessary to make a contract legally binding. It distinguishes a contract from a gift or a one-sided promise. Both parties must provide something of value, whether it is goods, services, money, or something else, in exchange for what they receive.
Example:
For example, if you agree to pay your friend $50 in exchange for them painting your fence, the $50 payment is the consideration for your friend's painting services. Both parties are giving up something of value in exchange for something else.
Stranger to Consideration:
A stranger to consideration is a person who is not a party to the contract but benefits from it. They do not provide any consideration themselves but still receive some benefit from the contract.
Conclusion:
In conclusion, consideration is an essential element in the formation of a contract. It ensures that both parties are giving up something of value in exchange for their obligations. A stranger to consideration may benefit from a contract without providing any consideration themselves.
Consideration is a vital element in the formation of a contract. It refers to something of value that is exchanged between the parties to a contract. Without consideration, a contract may not be considered valid.
Explanation:
Consideration is necessary to make a contract legally binding. It distinguishes a contract from a gift or a one-sided promise. Both parties must provide something of value, whether it is goods, services, money, or something else, in exchange for what they receive.
Example:
For example, if you agree to pay your friend $50 in exchange for them painting your fence, the $50 payment is the consideration for your friend's painting services. Both parties are giving up something of value in exchange for something else.
Stranger to Consideration:
A stranger to consideration is a person who is not a party to the contract but benefits from it. They do not provide any consideration themselves but still receive some benefit from the contract.
Conclusion:
In conclusion, consideration is an essential element in the formation of a contract. It ensures that both parties are giving up something of value in exchange for their obligations. A stranger to consideration may benefit from a contract without providing any consideration themselves.
Consideration must move at the desire of: - a)The Promisor
- b)The promise
- c)The Promisor or any third party
- d)Both the promisor and the promisee
Correct answer is option 'A'. Can you explain this answer?
Consideration must move at the desire of:
a)
The Promisor
b)
The promise
c)
The Promisor or any third party
d)
Both the promisor and the promisee
|
|
Jayant Mishra answered |
Consideration must move at the desire of the promisor. It is a fundamental rule that the action or forbearance must be done at the desire of promisor. Similarly, acts done voluntarily or services rendered without any request cannot constitute a valid consideration.
The inadequacy of consideration will be taken into account by a court of law: - a)Always at the discretion of the court
- b)When the promisor performs his promise
- c)When absence of free consent is pleaded in the formation of the contract
- d)When the promisor expresses his desire to get maximum return for his promise
Correct answer is option 'C'. Can you explain this answer?
The inadequacy of consideration will be taken into account by a court of law:
a)
Always at the discretion of the court
b)
When the promisor performs his promise
c)
When absence of free consent is pleaded in the formation of the contract
d)
When the promisor expresses his desire to get maximum return for his promise
|
|
Arun Khanna answered |
When absence of free consent is pleaded in the formation of the contract
Description: According to explanation 2 of Section 25, an agreement to which the consent of the promisor is freely given is not void merely because the consideration is inadequate; but the inadequacy of the consideration may be taken into account by the court in determining the question whether the consent of the promisor was freely given.
Which of the following statements is true?- a)There can be a stranger to a consideration
- b)There can be a stranger to a contract
- c)There can be a stranger to a consideration and contract
- d)All of the above.
Correct answer is option 'A'. Can you explain this answer?
Which of the following statements is true?
a)
There can be a stranger to a consideration
b)
There can be a stranger to a contract
c)
There can be a stranger to a consideration and contract
d)
All of the above.
|
|
Charvi Roy answered |
Stranger to Consideration and Contract
Explanation:
A contract is an agreement between two or more parties that creates enforceable obligations that are legally binding. Consideration is something of value given by one party to the other in exchange for something else. It is an essential element of a contract. In general, parties to a contract must have given consideration for the contract to be valid.
Stranger to Consideration:
Consideration must move from the promisee or any other person. It means that consideration must be provided by the person to whom the promise is made or by someone else at the request of the promisee. A stranger to consideration is a person who does not provide any consideration for the contract. Such a person cannot enforce the contract.
For example, if A promises to pay B if C delivers goods to A, then C is a stranger to consideration because he has not provided any consideration for the contract. Therefore, C cannot enforce the contract against A.
Stranger to Contract:
A stranger to a contract is a person who is not a party to the contract. Such a person cannot enforce the contract. Only parties to a contract can enforce it.
For example, if A and B enter into a contract, C cannot enforce the contract because he is not a party to the contract.
Conclusion:
From the above explanation, it is clear that option 'A' is the correct answer. There can be a stranger to consideration, which means a person who does not provide any consideration for the contract and cannot enforce it. However, a stranger to a contract cannot enforce the contract because he is not a party to the contract.
Explanation:
A contract is an agreement between two or more parties that creates enforceable obligations that are legally binding. Consideration is something of value given by one party to the other in exchange for something else. It is an essential element of a contract. In general, parties to a contract must have given consideration for the contract to be valid.
Stranger to Consideration:
Consideration must move from the promisee or any other person. It means that consideration must be provided by the person to whom the promise is made or by someone else at the request of the promisee. A stranger to consideration is a person who does not provide any consideration for the contract. Such a person cannot enforce the contract.
For example, if A promises to pay B if C delivers goods to A, then C is a stranger to consideration because he has not provided any consideration for the contract. Therefore, C cannot enforce the contract against A.
Stranger to Contract:
A stranger to a contract is a person who is not a party to the contract. Such a person cannot enforce the contract. Only parties to a contract can enforce it.
For example, if A and B enter into a contract, C cannot enforce the contract because he is not a party to the contract.
Conclusion:
From the above explanation, it is clear that option 'A' is the correct answer. There can be a stranger to consideration, which means a person who does not provide any consideration for the contract and cannot enforce it. However, a stranger to a contract cannot enforce the contract because he is not a party to the contract.
Which of the following is not an exception to the rule “No Consideration, No Contract”?- a)Agreement made on account of natural love and affection
- b)Agreement to compensate for past voluntary services
- c)Contract of agency
- d)None of the above.
Correct answer is option 'D'. Can you explain this answer?
Which of the following is not an exception to the rule “No Consideration, No Contract”?
a)
Agreement made on account of natural love and affection
b)
Agreement to compensate for past voluntary services
c)
Contract of agency
d)
None of the above.
|
|
Nandini Iyer answered |
An agreement made without consideration is void unless it is expressed in writing and registered under the law for the time being in force for the registration of documents and is made on account if natural love and affection between the parties standing in near relation to each other. Agreement must be in writing and registered. If you have an oral arrangement or unregistered agreement although it is in writing, it will not be valid even though it proceeds from natural love and affection and even if the parties to it are near relations to each other. It must be both in writing and registered.
CONSIDERATION:
Definition- The tem consideration may define as the price paid by one party for the promise of the other. An agreement is legally enforceable only when each of the party is to give something and get something. This something is given or obtained is the price for the promise and is called consideration. Only those considerations are valid which are lawful. Subject to certain except an agreement without consideration is void.[2]In the contract Act consideration has been defined as “when at the desire of the promisor, or any other person has done or abstained from doing something, such act or abstinence or promise is called a consideration for the Promise. For instance- Jaber agrees to sell his bus for Tk. 10,00,000 to Farid. For Jaber’s Promise, the consideration is Tk.10, 00,000 for Farid’s promise, the consideration is the bus only.
Essential of a valid consideration
Consideration must move at the desire of the promisor.
Consideration may move from the promisor or any other person.
Consideration may be past, present, or future.
Consideration must be of some value.
Consideration is defined in the Indian Contract Act, 1872 in: - a)Section 2(f)
- b)Section 2(e)
- c)Section 2(g)
- d)Section 2(d)
Correct answer is option 'D'. Can you explain this answer?
Consideration is defined in the Indian Contract Act, 1872 in:
a)
Section 2(f)
b)
Section 2(e)
c)
Section 2(g)
d)
Section 2(d)
|
|
Alok Mehta answered |
Section 2(d) in The Indian Contract Act, 1872:
(d) When, at the desire of the promisor, the promisee or any other person has done or abstained from doing, or does or abstains from doing, or promises to do or to abstain from doing, something, such act or abstinence or promise is called a consideration for the promise;
Contracts of love and affection are valid under which head. - a)Contract without consideration
- b)Contract with consideration
- c)Stranger to a consideration
- d)None of these
Correct answer is option 'A'. Can you explain this answer?
Contracts of love and affection are valid under which head.
a)
Contract without consideration
b)
Contract with consideration
c)
Stranger to a consideration
d)
None of these
|
|
Srestha Shah answered |
Contracts of love and affection are valid under which head?
Contract without consideration.
Explanation:
A contract is an agreement between two or more parties that creates an obligation to do or not to do a particular thing. In general, a contract must have consideration, which means that each party to the contract must receive something of value in exchange for their promise.
However, contracts of love and affection are an exception to this rule. These contracts are made without any consideration, and are therefore considered to be gratuitous promises. Despite the lack of consideration, these contracts are still valid under the law.
Examples of contracts of love and affection include promises to make gifts, such as a promise to give a family member a car or to pay for a child's education. These promises are made out of love or affection, rather than for any commercial purpose, and are therefore not subject to the usual requirements of consideration.
In conclusion, contracts of love and affection are valid under the head of contract without consideration, as they are made without any exchange of value between the parties involved. Despite the lack of consideration, these contracts are still enforceable under the law, as long as they meet the other requirements of a valid contract, such as mutual assent and capacity to contract.
Contract without consideration.
Explanation:
A contract is an agreement between two or more parties that creates an obligation to do or not to do a particular thing. In general, a contract must have consideration, which means that each party to the contract must receive something of value in exchange for their promise.
However, contracts of love and affection are an exception to this rule. These contracts are made without any consideration, and are therefore considered to be gratuitous promises. Despite the lack of consideration, these contracts are still valid under the law.
Examples of contracts of love and affection include promises to make gifts, such as a promise to give a family member a car or to pay for a child's education. These promises are made out of love or affection, rather than for any commercial purpose, and are therefore not subject to the usual requirements of consideration.
In conclusion, contracts of love and affection are valid under the head of contract without consideration, as they are made without any exchange of value between the parties involved. Despite the lack of consideration, these contracts are still enforceable under the law, as long as they meet the other requirements of a valid contract, such as mutual assent and capacity to contract.
An executed consideration is _______.- a)Consideration prohibited by the executive of a company
- b)An act of mutual exchange of promises
- c)An act done is response to a positive promise
- d)An act done in the expectation of a proposal
Correct answer is option 'C'. Can you explain this answer?
An executed consideration is _______.
a)
Consideration prohibited by the executive of a company
b)
An act of mutual exchange of promises
c)
An act done is response to a positive promise
d)
An act done in the expectation of a proposal
|
Srsps answered |
Executed consideration is where the promisor asks for something in exchange for his promise and the promisee provides consideration by giving the promisor what he has requested.
A promise to pay time barred debt must be:- a)An oral promise
- b)Implied promise
- c)In writing and signed by the debtor or his authorized agent
- d)None of the above
Correct answer is option 'C'. Can you explain this answer?
A promise to pay time barred debt must be:
a)
An oral promise
b)
Implied promise
c)
In writing and signed by the debtor or his authorized agent
d)
None of the above
|
Rajat Patel answered |
Promise to pay a Time-Barred Debt. If a person makes a promise in writing signed by him or his authorized agent about paying a time-barred debt, then it is valid despite there being no consideration. The promise can be made to pay the debt wholly or in part.
Which of the following statements is correct?- a)The general rule is that a stranger to the contract cannot sue, but a stranger to the consideration can sue
- b)A stranger to the contract as well as stranger to the consideration can sue
- c)An agreement made without consideration on account of natural love & affection need not be registered
- d)A past consideration is not a good consideration
Correct answer is option 'A'. Can you explain this answer?
Which of the following statements is correct?
a)
The general rule is that a stranger to the contract cannot sue, but a stranger to the consideration can sue
b)
A stranger to the contract as well as stranger to the consideration can sue
c)
An agreement made without consideration on account of natural love & affection need not be registered
d)
A past consideration is not a good consideration
|
Priya Patel answered |
Stranger to consideration implies a promisee who has not furnished any consideration from the promise made to him. In other words, the consideration on behalf of promisee has been supplied by a third party. Consideration may move from promisee or any other person. Consideration from a third party is a valid consideration under English Law, however, consideration must move from the promisee only. A gifted certain property to her daughter with the condition that the daughter should pay an annuity to A’s brother B. However, the daughter failed to keep her promise and the brother sued the daughter to claim the annuity. It was held here that the words in Section2(d) “the promisee or any other person” indicate that a stranger to consideration may maintain a suit. It will be observed here that there was no contract between A’s daughter and B, but as a result of the agreement between A and his daughter, B was the beneciary and was entitled to the consideration, though he was a stranger to the contract. Therefore, a stranger to a consideration may enforce a contract. In India, a stranger to a consideration may enforce a contract but not a stranger to a contract.
Which of the following is Void Contract?- a)Agreement the meaning of which is certain
- b)Agreement with unlawful consideration
- c)Agreements with minor
- d)Agreement with inadequate consideration, if inadequate consideration, if inadequacy is not supported by free consent
Correct answer is option 'B'. Can you explain this answer?
Which of the following is Void Contract?
a)
Agreement the meaning of which is certain
b)
Agreement with unlawful consideration
c)
Agreements with minor
d)
Agreement with inadequate consideration, if inadequate consideration, if inadequacy is not supported by free consent
|
|
Nandini Iyer answered |
Every agreement of which the object or consideration is unlawful is void. Agreement without consideration, void, unless it is in writing and registered or is a promise to compensate for something done or is a promise to pay a debt barred by limitation law. This is a contract.
Privity of Contract is subject to the exception:- a)Where a trust or charge is created
- b)where payment is made to a third party
- c)Where payment is made by a third party
- d)None of these
Correct answer is option 'A'. Can you explain this answer?
Privity of Contract is subject to the exception:
a)
Where a trust or charge is created
b)
where payment is made to a third party
c)
Where payment is made by a third party
d)
None of these
|
|
Kavita Joshi answered |
The doctrine of privity of contract is a common law principle which provides that a contract cannot confer rights or impose obligations upon any person who is not a party to the contract. The premise is that only parties to contracts should be able to sue to enforce their rights or claim damages as such.
Promise to pay a time barred debt given in writing is______- a)Valid
- b)Enforceable
- c)Void
- d)Voidable
Correct answer is option 'A'. Can you explain this answer?
Promise to pay a time barred debt given in writing is______
a)
Valid
b)
Enforceable
c)
Void
d)
Voidable
|
Sameer Jain answered |
Valid
A promise to pay a time-barred debt given in writing is considered valid. Here's why:
Definition of a time-barred debt:
A time-barred debt refers to a debt that is past the statute of limitations, which is the time period within which a creditor can file a lawsuit to collect a debt. Once the statute of limitations has expired, the creditor can no longer sue the debtor to collect the debt.
Explanation of the answer:
In this scenario, the debtor has given a promise to pay the time-barred debt in writing. While the debt itself may be unenforceable due to the expiration of the statute of limitations, the promise to pay is still considered valid for several reasons:
1. Legal validity of a contract:
A promise to pay a debt, even if time-barred, can still be considered a contract. To form a valid contract, certain elements must be present, such as an offer, acceptance, and consideration. In this case, the promise to pay the debt in writing satisfies the requirement of an offer, and if the creditor accepts the offer, it forms a valid contract.
2. No prohibition on promises to pay time-barred debts:
There is no specific legal prohibition against making promises to pay time-barred debts. As long as the promise is made voluntarily and in writing, it can be legally enforceable. However, it's important to note that the creditor cannot take legal action to collect the time-barred debt itself. They can only enforce the promise to pay if the debtor fails to fulfill it.
3. Potential for a new agreement:
By making a promise to pay a time-barred debt, the debtor and creditor may be entering into a new agreement. This new agreement can potentially revive the debt and restart the statute of limitations. However, the revival of a time-barred debt depends on the laws of the specific jurisdiction and any applicable legal defenses.
Conclusion:
While the time-barred debt itself may be unenforceable, a promise to pay the debt given in writing is considered valid. However, it's important for debtors to understand their rights and obligations regarding time-barred debts and consult with a legal professional if they have any questions or concerns.
A promise to pay a time-barred debt given in writing is considered valid. Here's why:
Definition of a time-barred debt:
A time-barred debt refers to a debt that is past the statute of limitations, which is the time period within which a creditor can file a lawsuit to collect a debt. Once the statute of limitations has expired, the creditor can no longer sue the debtor to collect the debt.
Explanation of the answer:
In this scenario, the debtor has given a promise to pay the time-barred debt in writing. While the debt itself may be unenforceable due to the expiration of the statute of limitations, the promise to pay is still considered valid for several reasons:
1. Legal validity of a contract:
A promise to pay a debt, even if time-barred, can still be considered a contract. To form a valid contract, certain elements must be present, such as an offer, acceptance, and consideration. In this case, the promise to pay the debt in writing satisfies the requirement of an offer, and if the creditor accepts the offer, it forms a valid contract.
2. No prohibition on promises to pay time-barred debts:
There is no specific legal prohibition against making promises to pay time-barred debts. As long as the promise is made voluntarily and in writing, it can be legally enforceable. However, it's important to note that the creditor cannot take legal action to collect the time-barred debt itself. They can only enforce the promise to pay if the debtor fails to fulfill it.
3. Potential for a new agreement:
By making a promise to pay a time-barred debt, the debtor and creditor may be entering into a new agreement. This new agreement can potentially revive the debt and restart the statute of limitations. However, the revival of a time-barred debt depends on the laws of the specific jurisdiction and any applicable legal defenses.
Conclusion:
While the time-barred debt itself may be unenforceable, a promise to pay the debt given in writing is considered valid. However, it's important for debtors to understand their rights and obligations regarding time-barred debts and consult with a legal professional if they have any questions or concerns.
Stanger to a _________can sue.- a)Contract.
- b)Consideration.
- c)Promise
- d)Agreement
Correct answer is option 'B'. Can you explain this answer?
Stanger to a _________can sue.
a)
Contract.
b)
Consideration.
c)
Promise
d)
Agreement
|
|
Mahesh Chakraborty answered |
Explanation:
When it comes to suing, a stranger to a contract can only sue if there is consideration involved. Let's break down the components of this statement to understand why the correct answer is option 'B' - Consideration.
Stranger to a Contract:
- A stranger to a contract refers to a person who is not a party to the contract or someone who does not have privity of contract. In simple terms, it means that the person is not directly involved in the contract and does not have any legal rights or obligations under the contract.
Suing:
- Suing refers to the act of taking legal action against someone in a court of law. It is the process of initiating a lawsuit to seek legal remedies or enforce one's rights.
Consideration:
- Consideration is an essential element of a valid contract. It refers to something of value (such as money, goods, services, etc.) that is given by one party to another as part of the contract. Consideration is what makes a contract legally enforceable.
Explanation:
In order for a stranger to a contract to sue, there must be consideration involved. This means that the stranger must have provided something of value to one of the parties to the contract, and that party must have promised something in return.
Consideration is necessary because it ensures that both parties to the contract have exchanged something of value and have made a mutual commitment. It establishes a legal relationship between the parties and provides a basis for enforcing the contract.
Without consideration, a contract may be considered a mere promise or agreement, which is not legally binding. A stranger to a contract cannot sue based on a mere promise or agreement as there is no consideration involved.
Therefore, the correct answer to the question is option 'B' - Consideration. It is the presence of consideration that gives a stranger to a contract the legal right to sue in a court of law.
When it comes to suing, a stranger to a contract can only sue if there is consideration involved. Let's break down the components of this statement to understand why the correct answer is option 'B' - Consideration.
Stranger to a Contract:
- A stranger to a contract refers to a person who is not a party to the contract or someone who does not have privity of contract. In simple terms, it means that the person is not directly involved in the contract and does not have any legal rights or obligations under the contract.
Suing:
- Suing refers to the act of taking legal action against someone in a court of law. It is the process of initiating a lawsuit to seek legal remedies or enforce one's rights.
Consideration:
- Consideration is an essential element of a valid contract. It refers to something of value (such as money, goods, services, etc.) that is given by one party to another as part of the contract. Consideration is what makes a contract legally enforceable.
Explanation:
In order for a stranger to a contract to sue, there must be consideration involved. This means that the stranger must have provided something of value to one of the parties to the contract, and that party must have promised something in return.
Consideration is necessary because it ensures that both parties to the contract have exchanged something of value and have made a mutual commitment. It establishes a legal relationship between the parties and provides a basis for enforcing the contract.
Without consideration, a contract may be considered a mere promise or agreement, which is not legally binding. A stranger to a contract cannot sue based on a mere promise or agreement as there is no consideration involved.
Therefore, the correct answer to the question is option 'B' - Consideration. It is the presence of consideration that gives a stranger to a contract the legal right to sue in a court of law.
Payment of time-barred debt is: - a)Valid
- b)Void
- c)Illegal
- d)Voidable
Correct answer is option 'A'. Can you explain this answer?
Payment of time-barred debt is:
a)
Valid
b)
Void
c)
Illegal
d)
Voidable
|
|
Maheshwar Datta answered |
Understanding Time-Barred Debt
Time-barred debt refers to a debt that can no longer be legally enforced due to the expiration of a statute of limitations. However, the payment of such a debt is still considered valid.
Reasons Why Payment is Valid
- Voluntary Payment: A debtor can voluntarily choose to pay a time-barred debt. Such payment is considered valid because it is made with the debtor's consent, regardless of the legal enforceability of the original obligation.
- Legal Principle: The principle of "pacta sunt servanda" (agreements must be kept) upholds that parties are free to perform their obligations even after the statutory time limit has expired.
- Impact on Credit History: Payment of a time-barred debt can positively impact the debtor's credit history. It demonstrates responsibility and may help improve the debtor's creditworthiness in the eyes of lenders.
Consequences of Non-Payment
- No Legal Action: While a creditor cannot sue for the recovery of a time-barred debt, the creditor can still request payment, and the debtor may choose to pay to avoid any potential disputes.
- Debt Acknowledgment: Making a payment on a time-barred debt may sometimes reset the statute of limitations, allowing the creditor to pursue legal action for the remaining amount.
Conclusion
In summary, while a time-barred debt is unenforceable in court, the act of paying it is valid. Debtors should be aware of the implications and consider their options carefully when dealing with such debts.
Time-barred debt refers to a debt that can no longer be legally enforced due to the expiration of a statute of limitations. However, the payment of such a debt is still considered valid.
Reasons Why Payment is Valid
- Voluntary Payment: A debtor can voluntarily choose to pay a time-barred debt. Such payment is considered valid because it is made with the debtor's consent, regardless of the legal enforceability of the original obligation.
- Legal Principle: The principle of "pacta sunt servanda" (agreements must be kept) upholds that parties are free to perform their obligations even after the statutory time limit has expired.
- Impact on Credit History: Payment of a time-barred debt can positively impact the debtor's credit history. It demonstrates responsibility and may help improve the debtor's creditworthiness in the eyes of lenders.
Consequences of Non-Payment
- No Legal Action: While a creditor cannot sue for the recovery of a time-barred debt, the creditor can still request payment, and the debtor may choose to pay to avoid any potential disputes.
- Debt Acknowledgment: Making a payment on a time-barred debt may sometimes reset the statute of limitations, allowing the creditor to pursue legal action for the remaining amount.
Conclusion
In summary, while a time-barred debt is unenforceable in court, the act of paying it is valid. Debtors should be aware of the implications and consider their options carefully when dealing with such debts.
The size of suspended solids lies in the range of ________- a)10-3 – 10-6 mm
- b)103 – 106 mm
- c)10-1 – 10-3 mm
- d)101 – 103 mm
Correct answer is option 'C'. Can you explain this answer?
The size of suspended solids lies in the range of ________
a)
10-3 – 10-6 mm
b)
103 – 106 mm
c)
10-1 – 10-3 mm
d)
101 – 103 mm
|
|
Akshat Datta answered |
To 10-6 meters (micrometers)
b) 10-6 to 10-9 meters (nanometers)
c) 10-9 to 10-12 meters (picometers)
d) 10-12 to 10-15 meters (femtometers)
a) 10-3 to 10-6 meters (micrometers)
b) 10-6 to 10-9 meters (nanometers)
c) 10-9 to 10-12 meters (picometers)
d) 10-12 to 10-15 meters (femtometers)
a) 10-3 to 10-6 meters (micrometers)
There can be a stranger to a - a)Contract
- b)Promise
- c)Agreement
- d)Consideration
Correct answer is option 'D'. Can you explain this answer?
There can be a stranger to a
a)
Contract
b)
Promise
c)
Agreement
d)
Consideration
|
|
Kavita Joshi answered |
According to sec 2(d) of Indian contract act,1872
Consideration definition says that "
when at the desire of the promisor, promisee or any other person- has done or abstained from doing ,does or abstains from doing, promises to do or abstains from doing something
".According to this definition law only considers that in a contract consideration should be there,and it is immaterial who has supplied consideration. that is ,a stranger can also give consideration. so when promisee does not give consideration and if it is supplied by stranger, than promisee becomes stranger to consideration. so promisee though he does not give consideration he can sue promisor for enforcing the contract i.e enforcing promise given by promisor, because consideration is there and it is supplied by some third party.
Agreement without consideration is valid when made ?- a)Out of love and affection due to near relationship
- b)To pay a time barred debt
- c)To compensate a person who has already done something voluntarily
- d)All of these
Correct answer is option 'D'. Can you explain this answer?
Agreement without consideration is valid when made ?
a)
Out of love and affection due to near relationship
b)
To pay a time barred debt
c)
To compensate a person who has already done something voluntarily
d)
All of these
|
|
Arun Khanna answered |
Consideration being one of the essential elements of a valid contract, the general rule is that “an agreement made without consideration is void.” But there are a few exceptions to the rule, where an agreement without consideration will be perfectly valid and binding.
Agreement without consideration, void, unless it is in writing and registered or is a promise to compensate for something done or is a promise to pay a debt barred by limitation law.
Newton owes Rs. 18,000 to Johnson. Johnson promises to accept Rs. 10,000 in full settlement of the account. The agreement is:- a)Unenforceable
- b)Voidable
- c)Valid
- d)Illegal
Correct answer is option 'C'. Can you explain this answer?
Newton owes Rs. 18,000 to Johnson. Johnson promises to accept Rs. 10,000 in full settlement of the account. The agreement is:
a)
Unenforceable
b)
Voidable
c)
Valid
d)
Illegal
|
|
Alok Mehta answered |
A valid contract is a written or expressed agreement between two parties to provide a product or service. There are essentially six elements of a contract that make it a legal and binding document. In order for a contract to be enforceable, it must contain: ... Intent of both parties to carry out their promise.
Consideration in India is: - a)Past consideration
- b)Present consideration
- c)Future consideration
- d)Past, Present or future consideration
Correct answer is option 'D'. Can you explain this answer?
Consideration in India is:
a)
Past consideration
b)
Present consideration
c)
Future consideration
d)
Past, Present or future consideration
|
|
Simran Pillai answered |
Consideration in India:
In Indian contract law, consideration refers to the something of value that is exchanged between parties in a contract. It is an essential element for the validity of a contract. Consideration can be past, present, or future.
Past Consideration:
Past consideration refers to a promise made in return for an act that has already been performed. In other words, it is a promise to give something in exchange for a past action or service. However, past consideration is generally not valid consideration in India, as it lacks the element of reciprocity.
Present Consideration:
Present consideration refers to a promise made in exchange for an act or promise that is being performed or given at the same time. It is the most common form of consideration in contracts. For example, if A promises to pay B a certain amount of money in exchange for B delivering goods, the consideration is present because both the promise and the act occur simultaneously.
Future Consideration:
Future consideration refers to a promise made in exchange for an act or promise that will be performed or given in the future. It involves a promise to do or refrain from doing something in the future. For example, if A promises to pay B a certain amount of money in exchange for B providing consulting services over a period of six months, the consideration is future because the act will be performed at a later date.
Past, Present or Future Consideration:
In India, consideration can be past, present, or future. The Indian Contract Act, 1872 does not specifically distinguish between these types of consideration. As long as there is a valid exchange of something of value between the parties, it is considered as valid consideration. The important aspect is that consideration must be real and have some value in the eyes of the law.
In conclusion, consideration in India can be past, present, or future. The type of consideration depends on the timing of the act or promise in relation to the contract. However, it is important to note that past consideration is generally not considered valid consideration in India.
In Indian contract law, consideration refers to the something of value that is exchanged between parties in a contract. It is an essential element for the validity of a contract. Consideration can be past, present, or future.
Past Consideration:
Past consideration refers to a promise made in return for an act that has already been performed. In other words, it is a promise to give something in exchange for a past action or service. However, past consideration is generally not valid consideration in India, as it lacks the element of reciprocity.
Present Consideration:
Present consideration refers to a promise made in exchange for an act or promise that is being performed or given at the same time. It is the most common form of consideration in contracts. For example, if A promises to pay B a certain amount of money in exchange for B delivering goods, the consideration is present because both the promise and the act occur simultaneously.
Future Consideration:
Future consideration refers to a promise made in exchange for an act or promise that will be performed or given in the future. It involves a promise to do or refrain from doing something in the future. For example, if A promises to pay B a certain amount of money in exchange for B providing consulting services over a period of six months, the consideration is future because the act will be performed at a later date.
Past, Present or Future Consideration:
In India, consideration can be past, present, or future. The Indian Contract Act, 1872 does not specifically distinguish between these types of consideration. As long as there is a valid exchange of something of value between the parties, it is considered as valid consideration. The important aspect is that consideration must be real and have some value in the eyes of the law.
In conclusion, consideration in India can be past, present, or future. The type of consideration depends on the timing of the act or promise in relation to the contract. However, it is important to note that past consideration is generally not considered valid consideration in India.
Consideration in India may be: - a)Past, present or future
- b)Present only
- c)Past only
- d)Future only
Correct answer is option 'A'. Can you explain this answer?
Consideration in India may be:
a)
Past, present or future
b)
Present only
c)
Past only
d)
Future only
|
|
Gopal Sen answered |
Consideration in India - Explained
Consideration is a crucial element of a valid contract. It is the price that one party pays for the promise or performance of the other. In India, consideration can be past, present, or future. Let's understand this in detail.
Meaning of Consideration
Consideration is the price that one party pays for the promise or performance of the other in a contract. It is something of value that is given or promised by one party in exchange for something of value given or promised by the other party.
Types of Consideration
In India, consideration can be of three types:
1. Past Consideration: When a party promises to do something that he has already done, it is called past consideration. For example, if A promises to pay B Rs. 500 for the services B provided him a month ago, it is a case of past consideration.
2. Present Consideration: When a party promises to do something in exchange for something that the other party is doing at the same time, it is called present consideration. For example, if A promises to pay B Rs. 500 for designing a logo for him, and B is doing the work at that time, it is a case of present consideration.
3. Future Consideration: When a party promises to do something in exchange for something that the other party will do in the future, it is called future consideration. For example, if A promises to pay B Rs. 500 for designing a logo for him, and B is going to do the work in the future, it is a case of future consideration.
Importance of Consideration in India
Consideration is an essential element of a valid contract in India. A contract without consideration is void. It is because, without consideration, a contract would be a mere promise, and not a legal obligation.
Conclusion
In conclusion, consideration is the price that one party pays for the promise or performance of the other in a contract. In India, it can be past, present, or future. Consideration is an essential element of a valid contract in India, and a contract without consideration is void.
Consideration is a crucial element of a valid contract. It is the price that one party pays for the promise or performance of the other. In India, consideration can be past, present, or future. Let's understand this in detail.
Meaning of Consideration
Consideration is the price that one party pays for the promise or performance of the other in a contract. It is something of value that is given or promised by one party in exchange for something of value given or promised by the other party.
Types of Consideration
In India, consideration can be of three types:
1. Past Consideration: When a party promises to do something that he has already done, it is called past consideration. For example, if A promises to pay B Rs. 500 for the services B provided him a month ago, it is a case of past consideration.
2. Present Consideration: When a party promises to do something in exchange for something that the other party is doing at the same time, it is called present consideration. For example, if A promises to pay B Rs. 500 for designing a logo for him, and B is doing the work at that time, it is a case of present consideration.
3. Future Consideration: When a party promises to do something in exchange for something that the other party will do in the future, it is called future consideration. For example, if A promises to pay B Rs. 500 for designing a logo for him, and B is going to do the work in the future, it is a case of future consideration.
Importance of Consideration in India
Consideration is an essential element of a valid contract in India. A contract without consideration is void. It is because, without consideration, a contract would be a mere promise, and not a legal obligation.
Conclusion
In conclusion, consideration is the price that one party pays for the promise or performance of the other in a contract. In India, it can be past, present, or future. Consideration is an essential element of a valid contract in India, and a contract without consideration is void.
A is indebted to B. He sells a trolley to C. C promises to pay all debts of A to B. if C fails to pay, B has no right to sue C because : - a)C is stranger to consideration
- b)C is stranger to contract
- c)Both
- d)None
Correct answer is option 'B'. Can you explain this answer?
A is indebted to B. He sells a trolley to C. C promises to pay all debts of A to B. if C fails to pay, B has no right to sue C because :
a)
C is stranger to consideration
b)
C is stranger to contract
c)
Both
d)
None
|
|
Shanaya Deshpande answered |
Explanation:
In this scenario, A is indebted to B, and A sells a trolley to C. C promises to pay all the debts of A to B. However, if C fails to pay, B has no right to sue C because C is a stranger to the contract.
Stranger to Consideration:
Consideration is an essential element of a contract. It refers to something of value that is given in exchange for a promise. In this case, A is indebted to B, which means there is a consideration between A and B. However, C is not involved in this consideration. C's promise to pay the debts of A to B is not supported by any consideration from B. Therefore, C is a stranger to consideration.
Stranger to Contract:
A contract is an agreement between two or more parties that creates legal obligations. In this case, the contract is between A and C for the sale of the trolley. B is not a party to this contract. While C promises to pay the debts of A to B, this promise is not part of the contract between A and C. B is not a party to this promise and therefore has no right to sue C.
Conclusion:
Based on the above explanation, the correct answer is option B - C is a stranger to the contract. B has no right to sue C because C's promise to pay the debts of A to B is not supported by consideration and C is not a party to the contract between A and C.
In this scenario, A is indebted to B, and A sells a trolley to C. C promises to pay all the debts of A to B. However, if C fails to pay, B has no right to sue C because C is a stranger to the contract.
Stranger to Consideration:
Consideration is an essential element of a contract. It refers to something of value that is given in exchange for a promise. In this case, A is indebted to B, which means there is a consideration between A and B. However, C is not involved in this consideration. C's promise to pay the debts of A to B is not supported by any consideration from B. Therefore, C is a stranger to consideration.
Stranger to Contract:
A contract is an agreement between two or more parties that creates legal obligations. In this case, the contract is between A and C for the sale of the trolley. B is not a party to this contract. While C promises to pay the debts of A to B, this promise is not part of the contract between A and C. B is not a party to this promise and therefore has no right to sue C.
Conclusion:
Based on the above explanation, the correct answer is option B - C is a stranger to the contract. B has no right to sue C because C's promise to pay the debts of A to B is not supported by consideration and C is not a party to the contract between A and C.
A consideration is: - a)A reason behind making a proposal
- b)A condition of the fulfillment of the other’s promise
- c)Doing or abstaining from doing something at the desire of the promisor
- d)Reward for something which one has done for another
Correct answer is option 'C'. Can you explain this answer?
A consideration is:
a)
A reason behind making a proposal
b)
A condition of the fulfillment of the other’s promise
c)
Doing or abstaining from doing something at the desire of the promisor
d)
Reward for something which one has done for another
|
|
Raghavendra Choudhury answered |
Party's obligationsc)A factor to be taken into account when making a decisiond)All of the above
Past consideration is valid in. - a)England only
- b)India only
- c)Both
- d)None
Correct answer is option 'B'. Can you explain this answer?
Past consideration is valid in.
a)
England only
b)
India only
c)
Both
d)
None
|
Bhaskar Sharma answered |
Explanation:
Past consideration refers to an act done prior to the promise being made. In contract law, past consideration is not considered to be valid consideration because the act was done before the promise was made.
In India, as per the Indian Contract Act, 1872, past consideration is not considered as valid consideration for a contract. This means that if a promise is made after an act has already been performed, it cannot be enforced, as there was no consideration at the time the promise was made.
In England, however, there are certain exceptions to this rule. The doctrine of "practical benefit" and "legal liability" are two exceptions to the rule of past consideration. If the act performed had resulted in a practical benefit to the promisor or had imposed a legal liability on the promisor, then past consideration may be considered valid in England.
Therefore, the correct answer to the question is option B - India only. In India, past consideration is not considered valid consideration for a contract.
Past consideration refers to an act done prior to the promise being made. In contract law, past consideration is not considered to be valid consideration because the act was done before the promise was made.
In India, as per the Indian Contract Act, 1872, past consideration is not considered as valid consideration for a contract. This means that if a promise is made after an act has already been performed, it cannot be enforced, as there was no consideration at the time the promise was made.
In England, however, there are certain exceptions to this rule. The doctrine of "practical benefit" and "legal liability" are two exceptions to the rule of past consideration. If the act performed had resulted in a practical benefit to the promisor or had imposed a legal liability on the promisor, then past consideration may be considered valid in England.
Therefore, the correct answer to the question is option B - India only. In India, past consideration is not considered valid consideration for a contract.
Agreement without consideration is valid when made ?- a)Out of love and affection due to near relationship
- b)To pay a time barred debt
- c)To compensate a person who has already done something voluntarily
- d)All of these
Correct answer is option 'D'. Can you explain this answer?
Agreement without consideration is valid when made ?
a)
Out of love and affection due to near relationship
b)
To pay a time barred debt
c)
To compensate a person who has already done something voluntarily
d)
All of these
|
Ritika Iyer answered |
Out of love and affection due to near relationship
Agreements made out of love and affection due to near relationship are considered valid without consideration. This is because the law recognizes that there is an inherent trust and bond in such relationships which can be considered as a form of consideration.
To pay a time barred debt
An agreement to pay a time-barred debt is also considered valid without consideration. This is because the debtor has a moral obligation to pay the debt even if it is legally unenforceable due to the expiration of the limitation period.
To compensate a person who has already done something voluntarily
An agreement to compensate a person who has already done something voluntarily is also valid without consideration. This is based on the principle of equity and fairness, where the law recognizes the need to reward individuals for their actions even if there was no prior agreement for compensation.
Therefore, in all of the above cases, agreements made without consideration are considered valid under the law.
Agreements made out of love and affection due to near relationship are considered valid without consideration. This is because the law recognizes that there is an inherent trust and bond in such relationships which can be considered as a form of consideration.
To pay a time barred debt
An agreement to pay a time-barred debt is also considered valid without consideration. This is because the debtor has a moral obligation to pay the debt even if it is legally unenforceable due to the expiration of the limitation period.
To compensate a person who has already done something voluntarily
An agreement to compensate a person who has already done something voluntarily is also valid without consideration. This is based on the principle of equity and fairness, where the law recognizes the need to reward individuals for their actions even if there was no prior agreement for compensation.
Therefore, in all of the above cases, agreements made without consideration are considered valid under the law.
Past consideration is valid in:- a)England Only
- b)India only
- c)Both
- d)None
Correct answer is option 'B'. Can you explain this answer?
Past consideration is valid in:
a)
England Only
b)
India only
c)
Both
d)
None
|
|
Lekshmi Mehta answered |
Past consideration refers to a situation where a promise is made in return for an act or forbearance that has already been completed before the promise is made. In other words, it is a promise to pay for something that has already been given or done in the past. The general rule is that past consideration is not valid and cannot be enforced. However, there are certain exceptions to this rule.
In the context of the question, the correct answer is option 'B' - India only. Let's discuss the reasons for this:
1. English Law:
In England, past consideration is generally not valid. The law requires that consideration must move from the promisee in return for the promise made by the promisor. Past consideration does not fulfill this requirement as it refers to something that has already been done or given before the promise was made.
2. Indian Contract Act, 1872:
In India, the situation is different. The Indian Contract Act, 1872 recognizes past consideration as valid in certain circumstances. Section 25 of the Act states that an agreement made without consideration is void, except in a few cases including past consideration. It states that if a promise is made in writing and is signed by the person making it or by his authorized agent, it is a valid contract even if there is no consideration.
3. Exceptions to the Rule:
Although past consideration is generally not valid, there are exceptions to this rule. One such exception is when the act or forbearance was done at the request of the promisor. In such a case, the promise made after the act or forbearance can be enforced. This exception is recognized under Indian law, making past consideration valid in India, but not in England.
In conclusion, past consideration is valid in India but not in England. The Indian Contract Act, 1872 recognizes past consideration as valid in certain circumstances, while English law generally does not. It is important to understand the legal principles and exceptions regarding consideration in contract law to ensure the validity and enforceability of agreements.
In the context of the question, the correct answer is option 'B' - India only. Let's discuss the reasons for this:
1. English Law:
In England, past consideration is generally not valid. The law requires that consideration must move from the promisee in return for the promise made by the promisor. Past consideration does not fulfill this requirement as it refers to something that has already been done or given before the promise was made.
2. Indian Contract Act, 1872:
In India, the situation is different. The Indian Contract Act, 1872 recognizes past consideration as valid in certain circumstances. Section 25 of the Act states that an agreement made without consideration is void, except in a few cases including past consideration. It states that if a promise is made in writing and is signed by the person making it or by his authorized agent, it is a valid contract even if there is no consideration.
3. Exceptions to the Rule:
Although past consideration is generally not valid, there are exceptions to this rule. One such exception is when the act or forbearance was done at the request of the promisor. In such a case, the promise made after the act or forbearance can be enforced. This exception is recognized under Indian law, making past consideration valid in India, but not in England.
In conclusion, past consideration is valid in India but not in England. The Indian Contract Act, 1872 recognizes past consideration as valid in certain circumstances, while English law generally does not. It is important to understand the legal principles and exceptions regarding consideration in contract law to ensure the validity and enforceability of agreements.
Chapter doubts & questions for Unit 2: Consideration - Business Laws for CA Foundation 2025 is part of CA Foundation exam preparation. The chapters have been prepared according to the CA Foundation exam syllabus. The Chapter doubts & questions, notes, tests & MCQs are made for CA Foundation 2025 Exam. Find important definitions, questions, notes, meanings, examples, exercises, MCQs and online tests here.
Chapter doubts & questions of Unit 2: Consideration - Business Laws for CA Foundation in English & Hindi are available as part of CA Foundation exam.
Download more important topics, notes, lectures and mock test series for CA Foundation Exam by signing up for free.
Business Laws for CA Foundation
51 videos|110 docs|57 tests
|
Signup to see your scores go up within 7 days!
Study with 1000+ FREE Docs, Videos & Tests
10M+ students study on EduRev
|
© EduRev
|
Education Revolution
|
|
Signup to see your scores
go up within 7 days!
Access 1000+ FREE Docs, Videos and Tests
Takes less than 10 seconds to signup