CA Foundation Exam > CA Foundation Questions > Which of the following is/are false?1 . Consi...
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Which of the following is/are false?
1 . Consideration must be real.
2 . Consideration can be inadequate.
3 . A promise to do something which one is already bound to do by law, will be treated as good consideration.
4 . Consideration must be adequate.
- a)1 & 2
- b)2 & 3
- c)3 & 4
- d)1 & 4.
Correct answer is option 'C'. Can you explain this answer?
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Verified Answer
Which of the following is/are false?1 . Consideration must be real.2 ....
Consideration must be real: This is true. Consideration must be something of value in the eyes of the law, meaning it must be real and not illusory.
Consideration can be inadequate: This is true. The law does not require the consideration to be adequate, meaning it does not need to be equivalent to the value of the promise. Courts typically do not inquire into the adequacy of consideration as long as it is real and lawful.
A promise to do something which one is already bound to do by law, will be treated as good consideration: This is false. A promise to do something that one is already legally obligated to do is generally not considered good consideration because the promisor is not providing any new benefit or detriment.
Consideration must be adequate: This is false. As mentioned earlier, the law does not require consideration to be adequate.
Conclusion:
- Statement 3 is false.
- Statement 4 is false.
The correct answer is Option 3: 3 & 4.
Most Upvoted Answer
Which of the following is/are false?1 . Consideration must be real.2 ....
False Statements Explained:
Consideration in a contract is a fundamental concept that refers to something of value exchanged between parties. Let's analyze each false statement provided in the question:
1. Consideration must be real: This statement is true. Consideration must be real, meaning it must have some value in the eyes of the law.
2. Consideration can be inadequate: This statement is false. Consideration must be sufficient but not necessarily adequate. As long as there is some value exchanged between the parties, the consideration is considered valid.
3. A promise to do something which one is already bound to do by law will be treated as good consideration: This statement is false. A promise to do something that one is already legally obligated to do does not constitute valid consideration because there is no new value being exchanged.
4. Consideration must be adequate: This statement is false. Consideration does not need to be of equal value to the other party's promise. As long as there is some value exchanged, even if it is nominal, the consideration is valid.
In conclusion, the false statements are 2 and 3. Consideration must be real and can be nominal, but it cannot be something the party is already legally bound to do.
Consideration in a contract is a fundamental concept that refers to something of value exchanged between parties. Let's analyze each false statement provided in the question:
1. Consideration must be real: This statement is true. Consideration must be real, meaning it must have some value in the eyes of the law.
2. Consideration can be inadequate: This statement is false. Consideration must be sufficient but not necessarily adequate. As long as there is some value exchanged between the parties, the consideration is considered valid.
3. A promise to do something which one is already bound to do by law will be treated as good consideration: This statement is false. A promise to do something that one is already legally obligated to do does not constitute valid consideration because there is no new value being exchanged.
4. Consideration must be adequate: This statement is false. Consideration does not need to be of equal value to the other party's promise. As long as there is some value exchanged, even if it is nominal, the consideration is valid.
In conclusion, the false statements are 2 and 3. Consideration must be real and can be nominal, but it cannot be something the party is already legally bound to do.
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Which of the following is/are false?1 . Consideration must be real.2 ....
A rule regarding consideration is that consideration must be real though not adequate . So 1 &2 are right
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Which of the following is/are false?1 . Consideration must be real.2 . Consideration can be inadequate.3 . A promise to do something which one is already bound to do by law, will be treated as good consideration.4 . Consideration must be adequate.a)1 & 2b)2 & 3c)3 & 4d)1 & 4.Correct answer is option 'C'. Can you explain this answer?
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