Test: Consideration- 1 - CA Foundation MCQ

Not required. 

Equal to the amount of gift.

Less than the amount of gift.

More than the amount of gift. 

No, as the consideration was inadequate A cancelled the contract 

Yes, A is liable to pay damages to B for failure to carry out his part of the contract 

No, as the contract was made due to Undue Influence 

Any of the above

Void

Valid

Illegal

None.

Consideration must be adequate 

Consideration must result in a benefit to both the parties 

Consideration must be something, which a promisor is not already bound to do 

Past consideration is no consideration in India

Always at the discretion of the court

When the promisor performs his promise 

When absence of free consent is pleaded in the formation of the contract 

When the promisor expresses his desire to get maximum return for his promise 

Agreement the meaning of which is certain 

Agreement with unlawful consideration 

Agreements with minor 

Agreement with inadequate consideration, if inadequate consideration, if inadequacy is not supported by free consent

Past, present or future 

Present only 

Past only 

Future only 

There can be a stranger to a consideration 

There can be a stranger to a contract

There can be a stranger to a consideration and contract

All of the above.

Consideration must move at the desire of the promisor.

Consideration has to be complete and lawful.

An Agreement with Out Consideration is Valid

Past Consideration is no Consideration

Out of love and affection due to near relationship 

To pay a time barred debt 

To compensate a person who has already done something voluntarily 

All of these 

Valid if it is written and registered.

Invalid even if it is written & registered

Valid even if it is written/oral 

Any of the above.

Valid 

Void 

Illegal

Voidable 

C is stranger to consideration 

C is stranger to contract 

Both 

None 

Natural love and affection 

Compensation for involuntary services 

Completed gift 

Agency 

England only 

India only 

Both 

None 

Contract. 

Consideration. 

Promise

Agreement

A reason behind making a proposal 

A condition of the fulfillment of the other’s promise 

Doing or abstaining from doing something at the desire of the promisor 

Reward for something which one has done for another 

Consideration must be at the desire of the promisor 

Consideration may move from promise or any other person

Consideration may be past, present or future

Consideration must be adequate

Valid 

Enforceable 

Void 

Voidable

Real 

Adequate 

Specific 

General 

Contract 

Promise 

Agreement 

Consideration

Contract without consideration 

Contract with consideration

Stranger to a consideration 

None of these 

England Only

India only

Both

None

There can be a stranger to a contract

There can be a stranger to a consideration 

There can be a stranger to a contract and consideration 

None of the above

Section 2(f)

Section 2(e)

Section 2(g)

Section 2(d)

Past consideration 

Present consideration 

Future consideration 

Past, Present or future consideration 

The trustee cannot recover anything from Rohan

The trustee can recover to the extent of liabilities from Rohan

The trustee can recover Rs. 10,000 from Rohan

None

Where a trust or charge is created

where payment is made to a third party

Where payment is made by a third party

None of these

Agreement made on account of natural love and affection

Agreement to compensate for past voluntary services

Contract of agency

None of the above.

The Promisor

The promise 

The Promisor or any third party 

Both the promisor and the promisee