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CA Foundation · Business Laws · The Indian Contract Act, 1872

Anita promises to pay Rs 5,000 to her neighbour Bhavna because Bhavna looked after Anita's garden last summer, entirely on her own and without being asked. The promise is made orally and Bhavna later sues for the amount. Which statement is correct?

Anita is not bound. Indian law accepts past consideration only when the act was done at the promisor's desire. Bhavna tended the garden voluntarily, without any request from Anita, so the promise lacks valid consideration and cannot be enforced, even though it was made in return for a benefit.

  1. AAnita is bound, because past consideration is valid in India only if the act was done without any request
  2. BAnita is not bound, because the act was voluntary and was not done at her desireCorrect
  3. CAnita is bound, because a promise made to compensate a person is always enforceable
  4. DAnita is not bound, because an oral promise to pay money is void

Explanation

Under the Indian Contract Act, consideration may be past, present or future, but the act must be done at the desire of the promisor. Bhavna acted voluntarily without any request from Anita, so there is no valid consideration. The option about past consideration requiring no request is wrong because the promisor's desire is essential.

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