New Enroll in RBI Grade B New Batch - Starts on May 21

    Question

    Which one of the following is correct:

    A Past consideration is no consideration Correct Answer Incorrect Answer
    B Consideration can be past, present or future Correct Answer Incorrect Answer
    C Consideration can only be present Correct Answer Incorrect Answer
    D Consideration can only be present or future Correct Answer Incorrect Answer

    Solution

    Whenever a contract is made, there is a price associated with it. It is the value offered and accepted by people or companies. In simple terms, consideration is something in return. As per section 2(d), the definition of consideration is as follows: “When at the desire of the promisor, the promise or any other person has done or abstained from doing, or does or abstains from doing, or promises to do or abstain from doing something, such act or abstinence or promise is called a consideration for the promise." Consideration is the foundation on which any contract is built. The law would enforce only those promises that are made as part of the consideration. Let us break down every part of the consideration definition in law: ·         Consideration has to move as per the desire of the promisor. ·         Consideration may move from the promise to another person. ·         Consideration might be in the past, present, or future. ·         Consideration does not need to be adequate. ·         Consideration must be real and not illusory. ·         Illegal or immoral acts are not considered.

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