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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?
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Verified Answer
Which of the following statement is true :a)Consideration must be adeq...
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.
Most Upvoted Answer
Which of the following statement is true :a)Consideration must be adeq...
The Correct answer is option 'C'.
Explanation:
Consideration is an essential element of a valid contract. It means something in return for something. It is the price for which the promise of the other is bought. The following are the explanations of the given options:
a) Consideration must be adequate: Adequate consideration means the value of consideration should not be less than the value of the promise made. However, the law does not require that the consideration should be adequate. It is for the parties to decide the adequacy of consideration. Hence, this statement is false.
b) Consideration must result in a benefit to both the parties: Consideration need not necessarily result in a benefit to both the parties. Sometimes, consideration may be given to one party to induce him to do something which is beneficial to the other party. Therefore, this statement is false.
c) Consideration must be something, which a promisor is not already bound to do: This statement is true. Consideration must be something that is not already required by law or by a prior contract. In other words, it should be something that the promisor is not already bound to do.
d) Past consideration is no consideration in India: Past consideration refers to a promise made in return for something that has already been done. In India, past consideration is generally not valid consideration. However, there are some exceptions to this rule. Therefore, this statement is partly true.
In conclusion, option 'C' is the correct answer as consideration must be something, which a promisor is not already bound to do.
Explanation:
Consideration is an essential element of a valid contract. It means something in return for something. It is the price for which the promise of the other is bought. The following are the explanations of the given options:
a) Consideration must be adequate: Adequate consideration means the value of consideration should not be less than the value of the promise made. However, the law does not require that the consideration should be adequate. It is for the parties to decide the adequacy of consideration. Hence, this statement is false.
b) Consideration must result in a benefit to both the parties: Consideration need not necessarily result in a benefit to both the parties. Sometimes, consideration may be given to one party to induce him to do something which is beneficial to the other party. Therefore, this statement is false.
c) Consideration must be something, which a promisor is not already bound to do: This statement is true. Consideration must be something that is not already required by law or by a prior contract. In other words, it should be something that the promisor is not already bound to do.
d) Past consideration is no consideration in India: Past consideration refers to a promise made in return for something that has already been done. In India, past consideration is generally not valid consideration. However, there are some exceptions to this rule. Therefore, this statement is partly true.
In conclusion, option 'C' is the correct answer as consideration must be something, which a promisor is not already bound to do.
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Which of the following statement is true :a)Consideration must be adeq...
Option C is the correct answer because the performance of an act by a person who is already legally bound to perform the same act, cannot be consideration for a contract. However where such person performs more than what he is legally bound to do, such a promise is a good consideration which is not what opposed by public policy. (for example x is a doctor in a government hospital his duty is to serve the patients without taking any fees from them as a government bears everything and also pay salary for that if such doctor takes extra money from patients for doing the act which he is legally bound to do does not constitute a good consideration) the remaining all options are false therefore C will be the right answer
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Which of the following statement is true :a)Consideration must be adequateb)Consideration must result in a benefit to both the partiesc)Consideration must be something, which a promisor is not already bound to dod)Past consideration is no consideration in IndiaCorrect answer is option 'C'. Can you explain this answer?
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