CA Foundation Exam > CA Foundation Questions > Which of the following statements is true?a)T...
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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?
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Most Upvoted Answer
Which of the following statements is true?a)There can be a stranger to...
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.
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Which of the following statements is true?a)There can be a stranger to...
It is general question there can be a stranger to a consideration.
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Which of the following statements is true?a)There can be a stranger to a considerationb)There can be a stranger to a contractc)There can be a stranger to a consideration and contractd)All of the above.Correct answer is option 'A'. Can you explain this answer?
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