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

Under the definition of consideration in Section 2(d) of the Indian Contract Act, 1872, the act, abstinence or promise forming consideration must be done or made at the desire of whom?

The act, abstinence or promise must be done at the desire of the promisor. Section 2(d) makes the promisor's desire the test of consideration, so something done only at the promisee's own initiative or a stranger's wish does not qualify.

  1. AThe promisorCorrect
  2. BThe promisee only
  3. CThe court
  4. DA third party who benefits from the promise

Explanation

Section 2(d) says that when, at the desire of the promisor, the promisee or any other person has done or abstained, or promises to do or abstain, something, it is consideration. The desire must therefore be that of the promisor. The promisee's own wish is not the test, so the second option is wrong.

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