CA Foundation Exam > CA Foundation Questions > Which of the following statement is true?a)Co...
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Which of the following statement is true?
- a)Consideration must result in a benefit to both parties.
- b)Past consideration is no consideration in India.
- c)Consideration must be adequate.
- d)Consideration must be something, which a promisor is not already bound to do.
Correct answer is option 'D'. Can you explain this answer?
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Which of the following statement is true?a)Consideration must result i...
Consideration in Contract Law
Consideration is an essential element of a contract. It is something of value that is given by one party to another in exchange for something else. Consideration can be in the form of money, goods, services, or even a promise to do something. It is necessary for the formation of a valid contract.
Types of Consideration
There are two types of consideration: Executed and Executory. Executed consideration refers to something that has already been performed at the time of the contract formation. Executory consideration refers to a promise to perform something in the future.
True Statement
The correct statement among the given options is option 'D'. Consideration must be something, which a promisor is not already bound to do. This means that consideration must be a promise to do something that the promisor is not already obligated to do. It cannot be a promise to do something that the promisor is already legally bound to do.
Explanation
Consideration is an exchange of promises between the parties to a contract. It is the value that each party gives to the other in exchange for the other's promise. For consideration to be valid, it must be something that the promisor is not already obligated to do. This is known as the rule of no past consideration.
For example, if A promises to pay B Rs. 10,000 for services already rendered, this is not a valid consideration because B has already performed the services and A is already obligated to pay for them. However, if A promises to pay B Rs. 10,000 for services to be rendered in the future, this is a valid consideration because B is not obligated to perform the services unless A makes the promise.
Conclusion
In conclusion, consideration is an essential element of a contract. It must be a promise to do something that the promisor is not already obligated to do. The rule of no past consideration means that consideration cannot be based on something that has already been performed. It must be something that is promised to be performed in the future.
Consideration is an essential element of a contract. It is something of value that is given by one party to another in exchange for something else. Consideration can be in the form of money, goods, services, or even a promise to do something. It is necessary for the formation of a valid contract.
Types of Consideration
There are two types of consideration: Executed and Executory. Executed consideration refers to something that has already been performed at the time of the contract formation. Executory consideration refers to a promise to perform something in the future.
True Statement
The correct statement among the given options is option 'D'. Consideration must be something, which a promisor is not already bound to do. This means that consideration must be a promise to do something that the promisor is not already obligated to do. It cannot be a promise to do something that the promisor is already legally bound to do.
Explanation
Consideration is an exchange of promises between the parties to a contract. It is the value that each party gives to the other in exchange for the other's promise. For consideration to be valid, it must be something that the promisor is not already obligated to do. This is known as the rule of no past consideration.
For example, if A promises to pay B Rs. 10,000 for services already rendered, this is not a valid consideration because B has already performed the services and A is already obligated to pay for them. However, if A promises to pay B Rs. 10,000 for services to be rendered in the future, this is a valid consideration because B is not obligated to perform the services unless A makes the promise.
Conclusion
In conclusion, consideration is an essential element of a contract. It must be a promise to do something that the promisor is not already obligated to do. The rule of no past consideration means that consideration cannot be based on something that has already been performed. It must be something that is promised to be performed in the future.
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Which of the following statement is true?a)Consideration must result i...
Past consideration is valid eg. consideration for past voluntary agreements.
Further consideration for which the promisor is already bound to do is void. eg. A teacher is bound to tell lectures which he received consideration from management. so he shouldn't ask those students for consideration again for his lectures.
Further consideration for which the promisor is already bound to do is void. eg. A teacher is bound to tell lectures which he received consideration from management. so he shouldn't ask those students for consideration again for his lectures.
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Which of the following statement is true?a)Consideration must result in a benefit to both parties.b)Past consideration is no consideration in India.c)Consideration must be adequate.d)Consideration must be something, which a promisor is not already bound to do.Correct answer is option 'D'. Can you explain this answer?
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Which of the following statement is true?a)Consideration must result in a benefit to both parties.b)Past consideration is no consideration in India.c)Consideration must be adequate.d)Consideration must be something, which a promisor is not already bound to do.Correct answer is option 'D'. Can you explain this answer? for CA Foundation 2024 is part of CA Foundation preparation. The Question and answers have been prepared according to the CA Foundation exam syllabus. Information about Which of the following statement is true?a)Consideration must result in a benefit to both parties.b)Past consideration is no consideration in India.c)Consideration must be adequate.d)Consideration must be something, which a promisor is not already bound to do.Correct answer is option 'D'. Can you explain this answer? covers all topics & solutions for CA Foundation 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Which of the following statement is true?a)Consideration must result in a benefit to both parties.b)Past consideration is no consideration in India.c)Consideration must be adequate.d)Consideration must be something, which a promisor is not already bound to do.Correct answer is option 'D'. Can you explain this answer?.
Which of the following statement is true?a)Consideration must result in a benefit to both parties.b)Past consideration is no consideration in India.c)Consideration must be adequate.d)Consideration must be something, which a promisor is not already bound to do.Correct answer is option 'D'. Can you explain this answer? for CA Foundation 2024 is part of CA Foundation preparation. The Question and answers have been prepared according to the CA Foundation exam syllabus. Information about Which of the following statement is true?a)Consideration must result in a benefit to both parties.b)Past consideration is no consideration in India.c)Consideration must be adequate.d)Consideration must be something, which a promisor is not already bound to do.Correct answer is option 'D'. Can you explain this answer? covers all topics & solutions for CA Foundation 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Which of the following statement is true?a)Consideration must result in a benefit to both parties.b)Past consideration is no consideration in India.c)Consideration must be adequate.d)Consideration must be something, which a promisor is not already bound to do.Correct answer is option 'D'. Can you explain this answer?.
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