Skip to content

CMA Foundation · Fundamentals of Business Laws and Business Communication · Void and Voidable Agreements, No Consideration No Contract

Under the Indian Contract Act, 1872, who may supply the consideration for a promise, according to the definition of consideration in Section 2(d)?

Consideration can be supplied by the promisee or any other person, provided it is at the desire of the promisor. This is the wording of Section 2(d), which differs from the English rule requiring consideration to move from the promisee alone.

  1. AOnly the promisee and nobody else
  2. BOnly the promisor
  3. CThe promisee or any other person, at the desire of the promisorCorrect
  4. DOnly a person who is a party to the written contract

Explanation

Section 2(d) says that at the desire of the promisor, the promisee or any other person has done or abstained from doing something, and that act is consideration. So consideration may move from a third person, unlike the English rule. Options limiting it to the promisee state the English rule, which is wrong here.

Did you get it right without looking?

One question tells you little. A timed set on Void and Voidable Agreements, No Consideration No Contract shows your real accuracy, how long you take and where you lose marks.

Practise Void and Voidable Agreements, No Consideration No ContractFree diagnostic mock

More Void and Voidable Agreements, No Consideration No Contract questions