Under Section 2(d) of the Indian Contract Act, 1872,

Q: Answer-Under Section 2(d) of the Indian Contract Act, 1872, what is the definition of 'consideration'?

Section 2d of the Indian Contract Act, 1872, defines consideration as the price for which the promise of the other party is bought. It can be 1 giving something of value, 2 doing something that one is not bound to do, 3 abstaining from doing something that one has a right to do, or 4 suffering detriment. Consideration must move from the promisee or at the promisors desire but need not move to the promisor Chinnaya v. Rao. Consideration is essential for contract formation except in case of gifts, wills, or agreements made under seal. Past consideration is generally not valid consideration must be present or future, flowing from the promisee, and must be legal and real.

what is the definition of "consideration"?

A Mere thought or intention to give something Correct Answer Incorrect Answer

B Money paid or payable for a contract Correct Answer Incorrect Answer

C When the promisee or any other person at the promisor's desire gives something of value, or does something, or abstains from doing something, or suffers detriment in relation to such promise Correct Answer Incorrect Answer

D A gift given without expecting anything in return Correct Answer Incorrect Answer

E Only monetary exchange in contracts Correct Answer Incorrect Answer

Solution

Section 2(d) of the Indian Contract Act, 1872, defines consideration as the price for which the promise of the other party is bought. It can be: (1) giving something of value, (2) doing something that one is not bound to do, (3) abstaining from doing something that one has a right to do, or (4) suffering detriment. Consideration must move from the promisee or at the promisor's desire but need not move to the promisor (Chinnaya v. Rao). Consideration is essential for contract formation except in case of gifts, wills, or agreements made under seal. Past consideration is generally not valid; consideration must be present or future, flowing from the promisee, and must be legal and real.

Practice Next

More Other Laws and Acts Questions

The Air India flight AI119 was diverted to Delhi at instructions of the government’s security regulatory committee, airport sources said.
Find out the appropriate word.
Identify the part of the sentence that contains an error:
Each of the following sentences has been divided into five parts (a), (b), (c), (d) and (e). One of these parts may contain a grammatical or contextual...
Of all the forces or objects in the Universe that we (A) / cannot see including dark energy and dark matter, none has (B) / frustrated human curiosity s...
Restoring soil health would help at mitigate the effects of climate change.
Opportunity for employment is being created increasingly by our developing plan are implemented.
Maps will be submitted by the State rural works department after the funds for the construction of roads will be released.
Identify the segment in the sentence which contains the grammatical error from the given options.

Prasad recalled that meeting people have been...
Each of the following sentences has been divided into five parts (a), (b), (c), (d), and (e) . One of these parts may contain a grammatical or usage er...

Thank You for posting your query. Please check your email for further guidance

Please Register/Login to Download Question