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

    Question

    Which of the following statement is true?

    A Consideration must be adequate Correct Answer Incorrect Answer
    B Past consideration is no consideration in India Correct Answer Incorrect Answer
    C Consideration must result in a benefit to both parties Correct Answer Incorrect Answer
    D Consideration must be something, which a promisor is not already bound to do Correct Answer Incorrect Answer

    Solution

    Consideration should be over and above the Promisors’ existing obligations. If the promisor is already obligated either by his promise or law to perform or abstain from a certain act, then it is not a good consideration for a promise. Example - Prakash receives a summons from the Court to appear before it as a witness for Surya. Surya promises to pay him Rs.10,000 to appear in the Court. This contract is not valid because Prakash is obligated by law to appear in the Court on receiving a summons.

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