Question

LEGAL PRINCIPLE: When at the desire of the promisor, the promisee had done or abstained from doing, or does or abstains from doing, or promises to do or abstain something, such an act or abstinence or promise is called consideration for the promise. FACTUAL SITUATION: A daughter promises to give maintenance to her uncle in consideration of her mother making a gift of certain properties to her. The daughter pleas lack of consideration when the uncle seeks to enforce the contract. She says that the uncle is a stranger to the consideration and so he cannot enforce the contract. The daughter DECISION: (Answer the question after reading the following paragraph.)

LEGAL PRINCIPLE: When at the desire of the promisor, the promisee had done or abstained from doing, or does or abstains from doing, or promises to do or abstain something, such an act or abstinence or promise is called consideration for the promise. FACTUAL SITUATION: A daughter promises to give maintenance to her uncle in consideration of her mother making a gift of certain properties to her. The daughter pleas lack of consideration when the uncle seeks to enforce the contract. She says that the uncle is a stranger to the consideration and so he cannot enforce the contract. The daughter DECISION: (Answer the question after reading the following paragraph.)

Direction: Given below is a statement of legal principle followed by a factual situation. Apply the principle to the facts given below and select the most appropriate answer.

Option A: Will succeed because uncle being a stranger to the consideration cannot enforce it
Option B: Will not succeed because uncle is a near relative and in such cases consideration is not necessary
Option C: Cannot succeed because consideration might move from any person
Option D: None of the above.

Correct Answer

Option: c

Explanation

According to Section 23 of the Indian Contract Act The consideration or object of an agreement is lawful, unless— it is forbidden by law ; or is of such a nature that if permitted, it would defeat the provisions of any law; or is fraudulent ; or involves or implies injury to the person or property of another; or the Court regards it as immoral, or opposed to public policy.

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