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

Section 2(d) describes consideration as an act, abstinence or promise. Which of the following is an example of abstinence as consideration?

Agreeing at the promisor's request to refrain from suing is abstinence. Section 2(d) lists doing, abstaining from doing, or promising either as forms of consideration, and forbearance to sue is a standard example of abstaining at the promisor's desire.

  1. AMeera promises to pay ₹5,000 to Karan for painting her house
  2. BKaran delivers a laptop to Meera at her request
  3. CMeera pays ₹5,000 to Karan in advance
  4. DKaran agrees, at Meera's request, to refrain from suing her for an existing debt, and she promises to pay a sum for this forbearanceCorrect

Explanation

Abstinence means refraining from doing something, here refraining from suing at the promisor's desire. The other options describe a promise to pay, a positive act of delivery, or a payment, which are acts or promises rather than abstinence.

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