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CMA Foundation · Fundamentals of Business Laws and Business Communication · Consideration and Legality of Object

Ravi asks his neighbour Sunita to look after his shop for a week and promises to pay her ₹2,000. At Ravi's request, Sunita's brother Anil, who is not a party to the agreement, minds the shop and Sunita receives the payment. Which statement is correct on the wording of Section 2(d)?

There is consideration. Section 2(d) allows the act to be done by the promisee or any other person, provided it is at the desire of the promisor. Since Ravi desired the shop to be minded, Anil's act counts even though Sunita did not do it herself.

  1. AThere is no consideration because Sunita herself did not do the act
  2. BThere is consideration only if Anil is also a party to the agreement
  3. CThere is consideration because the act was done at the promisor's desire by the promisee or any other personCorrect
  4. DThere is consideration only if the promise is made in writing

Explanation

Section 2(d) says that at the desire of the promisor, the promisee or any other person may do the act. The act of Anil was done at Ravi's desire, so it can be consideration. Option one is wrong because the section expressly allows 'any other person'.

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