CA Foundation Exam > CA Foundation Questions > Which of the following statement is true?a)Th...
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Which of the following statement is true?
- a)There can be a stranger to a contract.
- b)There can be a stranger to a consideration.
- c)There can be a stranger to a contract and consideration
- d)None of the above
Correct answer is option 'B'. Can you explain this answer?
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Which of the following statement is true?a)There can be a stranger to ...
The correct answer is (b) There can be a stranger to a consideration.
A contract involves an agreement between two or more parties, where each party promises to do or not do something in exchange for something of value, known as consideration. In a contract, all involved parties must have a clear understanding of the terms and conditions. However, the concept of "stranger to a contract" suggests that someone who is not a party to the contract cannot enforce it or be bound by its terms.
On the other hand, a "stranger to consideration" refers to a situation where a person who is not a party to the contract still benefits from the contract. This concept is based on the legal principle of "privity of consideration," which means that a person can enforce the terms of a contract if they have provided valuable consideration.
Let's break it down further:
A contract involves an agreement between two or more parties, where each party promises to do or not do something in exchange for something of value, known as consideration. In a contract, all involved parties must have a clear understanding of the terms and conditions. However, the concept of "stranger to a contract" suggests that someone who is not a party to the contract cannot enforce it or be bound by its terms.
On the other hand, a "stranger to consideration" refers to a situation where a person who is not a party to the contract still benefits from the contract. This concept is based on the legal principle of "privity of consideration," which means that a person can enforce the terms of a contract if they have provided valuable consideration.
Let's break it down further:
- Stranger to a contract: A person who is not a party to the contract and cannot enforce its terms or be bound by them.
- Stranger to a consideration: A person who is not a party to the contract but still benefits from it due to the legal principle of privity of consideration.
So, the statement "There can be a stranger to a consideration" is true because it is possible for someone who is not a party to the contract to still benefit from it if they have provided valuable consideration. This concept is important in situations where a third party may have a legitimate interest in the performance of a contract, even though they are not directly involved in the agreement.
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Community Answer
Which of the following statement is true?a)There can be a stranger to ...
Stranger to a Consideration
Explanation:
A stranger to a contract is a person who is not a party to the contract but may be affected by it. On the other hand, a consideration is something of value that is given in exchange for a promise or performance. In contract law, both parties must provide consideration for the contract to be valid.
Option A is incorrect because there can be a stranger to a contract. For example, if Party A contracts with Party B to sell a car, and Party C is injured by the car because it was defective, Party C may be a stranger to the contract but may still have a legal claim against Party A for damages.
Option B is correct because there cannot be a stranger to a consideration. Consideration must be provided by the parties to the contract, and a person who is not a party to the contract cannot provide consideration.
Option C is incorrect because while there can be a stranger to a contract, there cannot be a stranger to a consideration.
Option D is incorrect because option B is the correct answer.
Explanation:
A stranger to a contract is a person who is not a party to the contract but may be affected by it. On the other hand, a consideration is something of value that is given in exchange for a promise or performance. In contract law, both parties must provide consideration for the contract to be valid.
Option A is incorrect because there can be a stranger to a contract. For example, if Party A contracts with Party B to sell a car, and Party C is injured by the car because it was defective, Party C may be a stranger to the contract but may still have a legal claim against Party A for damages.
Option B is correct because there cannot be a stranger to a consideration. Consideration must be provided by the parties to the contract, and a person who is not a party to the contract cannot provide consideration.
Option C is incorrect because while there can be a stranger to a contract, there cannot be a stranger to a consideration.
Option D is incorrect because option B is the correct answer.
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Which of the following statement is true?a)There can be a stranger to a contract.b)There can be a stranger to a consideration.c)There can be a stranger to a contract and considerationd)None of the aboveCorrect answer is option 'B'. Can you explain this answer?
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