Test: Consideration- 2 - CA Foundation MCQ

The general rule is that a stranger to the contract cannot sue, but a stranger to the consideration can sue

A stranger to the contract as well as stranger to the consideration can sue

An agreement made without consideration on account of natural love & affection need not be registered

A past consideration is not a good consideration

Void

Valid

Illegal

None.

Valid 

Void

Voidable 

Party valid 

England Only

India only

Both

None

There can be a stranger to a contract

There can be a stranger to a consideration 

There can be a stranger to a contract and consideration 

None of the above

An oral promise

Implied promise

In writing and signed by the debtor or his authorized agent 

None of the above

Unenforceable

Voidable

Valid

Illegal

Always at the discretion of the court

When the promisor performs his promise 

When absence of free consent is pleaded in the formation of the contract 

When the promisor expresses his desire to get maximum return for his promise 

Out of love and affection due to near relationship 

To pay a time barred debt 

To compensate a person who has already done something voluntarily 

All of these 

Contract 

Promise 

Agreement 

Consideration

Contract. 

Consideration. 

Promise

Agreement

Agreement the meaning of which is certain 

Agreement with unlawful consideration 

Agreements with minor 

Agreement with inadequate consideration, if inadequate consideration, if inadequacy is not supported by free consent 

Consideration prohibited by the executive of a company 

An act of mutual exchange of promises

An act done is response to a positive promise 

An act done in the expectation of a proposal

Where a trust or charge is created

where payment is made to a third party

Where payment is made by a third party

None of these

Not required. 

Equal to the amount of gift.

Less than the amount of gift.

More than the amount of gift.