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CS Executive · Jurisprudence, Interpretation and General Laws · Contract Law

Meena finds a purse containing cash belonging to Anil and returns it without being asked. Later, Anil orally promises to pay her Rs. 500 as a reward for her act. Anil refuses to pay. What is the position?

Anil's promise is an enforceable contract. Section 25 treats a promise to compensate someone who has already voluntarily done something for the promisor as a contract even without fresh consideration. Writing and registration are not needed for this exception, so Meena can enforce the promised Rs. 500.

  1. AAnil's promise is void as there was no consideration at the time of the promise
  2. BAnil's promise is a contract because it compensates a person who has already voluntarily done something for himCorrect
  3. CAnil's promise is enforceable only if registered
  4. DAnil's promise is voidable because Meena did not request the act

Explanation

Section 25(2) makes a promise to compensate, wholly or in part, a person who has already voluntarily done something for the promisor a contract. Illustration (c) is similar. No writing or registration is required for this exception. The view that past acts are never consideration is wrong, because this exception expressly covers them.

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