Indian Contract Act 1872: Consideration Concepts

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Questions and Answers

What happens to an agreement without consideration, according to the Indian Contract Act, 1872?

It is void. (correct)

It may be enforceable.

It requires additional approval.

It is valid.

What best describes the principle of consideration in a contract?

A promise made without any expectation of return.

A benefit only one party receives.

An obligation that one party must fulfill only.

A reciprocal arrangement between parties. (correct)

How does Pollock define consideration?

The 'price' for which a promise is bought. (correct)

An act that benefits only the defendant.

The emotional value of a promise.

A formal document to finalize a contract.

According to Justice Patterson, what constitutes consideration?

Something of value in the eyes of the law. Signup and view all the answers

What is the commonly accepted definition of consideration?

As explained in Currie vs. Misa (1875). Signup and view all the answers

What makes consideration unenforceable due to physical impossibility?

The performance of the consideration is not possible. Signup and view all the answers

Which of the following is an example of unlawful consideration?

Promising to secure a government job in exchange for money. Signup and view all the answers

Why doesn't inadequate consideration invalidate an agreement?

Because the law assumes consideration exists. Signup and view all the answers

What is an example of uncertain consideration?

Offering 'a handsome salary' without a specified amount. Signup and view all the answers

Which condition renders consideration unlawful under Section 23 of the Indian Contract Act, 1872?

It is fraudulent or involves harming a person's property. Signup and view all the answers

What is the primary characteristic of consideration in a contract?

It consists of something of value exchanged between parties. Signup and view all the answers

Which of the following best describes a scenario involving valid consideration?

One party agrees to pay $100 for services rendered by another party. Signup and view all the answers

According to the definition of consideration, which of the following is NOT considered valid consideration?

Doing a favor without any discussion of exchange. Signup and view all the answers

Which of the following is a requirement for consideration to be deemed valid?

It must come at the desire of the promisor. Signup and view all the answers

What does the term 'quid pro quo' refer to in the context of consideration?

A mutual exchange of benefits. Signup and view all the answers

What constitutes valid consideration in a contract?

Forbearance to sue a party for a legitimate claim Signup and view all the answers

Why is the promise to pay a police officer for duties already performed considered void?

The performance of a legal duty is not seen as valid consideration. Signup and view all the answers

What is true about the doctrine of privity of contract?

Only the parties involved in the contract have legal rights under it. Signup and view all the answers

In which scenario is consideration deemed invalid?

A promise to pay an advocate extra for contractually defined services Signup and view all the answers

What is a key limitation of forbearance to sue as a valid consideration?

The claim must be legitimate and based on actual circumstances. Signup and view all the answers

What does privity of consideration state?

The person who furnished the consideration has the legal right to enforce the contract. Signup and view all the answers

In the case of Dutton vs. Poole, why was the son required to pay the marriage expenses?

There was consideration from his father in the form of a promise not to fell timber. Signup and view all the answers

What defines a 'stranger to consideration' in a contract?

A person who is not a party to the consideration but may benefit from it. Signup and view all the answers

What was the central outcome of the Chinnaya vs. Ramaya case?

The plaintiffs could enforce the promise due to consideration from the mother. Signup and view all the answers

Who has the right to sue under a contract when consideration is provided by someone else?

The beneficiaries of the contract. Signup and view all the answers

What is established once a contract is formed?

Privity of contract is established Signup and view all the answers

Which of the following statements about privity of contract is true?

Only parties to the contract can sue each other. Signup and view all the answers

In the case of Dunlop vs. Selfridge, why did Dunlop & Co. fail to sue Selfridge & Co.?

They were not in a contractual relationship. Signup and view all the answers

What does the doctrine of privity emphasize regarding contracts?

Contracts are only enforceable by parties involved. Signup and view all the answers

What was the outcome in the case of Jamna Das vs. Ram Avtar?

No privity of contract was established between B and R. Signup and view all the answers

What types of consideration are recognized under the Indian Contract Act?

Past, present, or future consideration Signup and view all the answers

Which statement is true about the movement of consideration?

Consideration must move at the desire of the promisor Signup and view all the answers

What is the implication of past consideration in contract validity?

Past consideration can be valid if made at the promisor's desire Signup and view all the answers

How is the adequacy of consideration judged in contracts?

By the parties at the time of agreement Signup and view all the answers

What can be a reason for courts to examine inadequacy of consideration?

To determine if free consent was given Signup and view all the answers

Which of the following scenarios illustrates present consideration?

A student paying monthly while attending classes Signup and view all the answers

What is true regarding the validity of a contract with inadequate consideration?

It can be valid if consent was freely given Signup and view all the answers

In which scenario is future consideration illustrated?

A student who promises to pay after completing the course Signup and view all the answers

What must be true for an act to constitute valid consideration in a contract?

The act must be done at the desire of the other party. Signup and view all the answers

In the case of Durga Prasad v. Baldeo, why was the shop owner F not liable to pay commission to A?

The construction was at the request of a third party. Signup and view all the answers

What determines the liability of a promisor in a contract?

If another party incurs liability relying on the promise. Signup and view all the answers

According to Section 2(d), what is important for a valid contract regarding consideration?

The existence of consideration itself. Signup and view all the answers

If the temple authorities enter into an unrelated contract after relying on Joy's promise, what is the outcome?

Joy is not liable for the ₹1 lac. Signup and view all the answers

Study Notes

Consideration

Consideration is an essential element of a valid contract
An agreement without consideration is a void agreement
Consideration is the price for which the promise of the other is bought
Consideration is the recompense given by the party contracting to the other
Consideration can be anything; some interest, profit, right, even forbearance to sue
Consideration must exist to make an agreement a valid contract
Consideration is what one party does for the other party, and in return what the other party does for the first party
Consideration is a benefit for both parties
Consideration is an exchange of promises
Consideration is the price paid for buying the promise of the other party
Consideration must move at the desire of the promisor

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Description

Test your knowledge on the principles of consideration as outlined in the Indian Contract Act of 1872. This quiz covers definitions, characteristics, and examples related to valid and unlawful consideration in contracts. Prepare to deepen your understanding of this essential aspect of contract law.