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

    Question

    Which of the following condition must exist so that a

    promise to pay for the past voluntary services is binding?
    A The services should have been rendered voluntarily Correct Answer Incorrect Answer
    B The services must have been rendered for the promisor Correct Answer Incorrect Answer
    C They must be in existence at the time when the services were rendered and must have intended to compensate the promise Correct Answer Incorrect Answer
    D All of the above Correct Answer Incorrect Answer

    Solution

    Past voluntary service If a person renders voluntary services without any request or promise from another and the person receiving the services makes a promise to pay for the services, then such a promise is enforceable in India under Section 25(2)  of the Indian Contract Act, 1872 which states: ‘‘An agreement made without consideration is void unless it’s a promise to compensate, wholly or in part, a person who has already voluntarily done something for the promisor, or something which the promisor was legally compellable to do; or unless.’’ For Example - Peter finds Noah’s wallet on the road. He returns it to him and Noah promises to pay Peter Rs 500. This is a valid contract under the Indian Contracts Act, 1872.

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