Professional Documents
Culture Documents
1. it is in writing and registered and the promise has been made due to natural
love and affection between the parties standing in near relation to each other.
2. it is a promise to compensate, wholely or in part, a person who has
voluntarily done something for the promisor or something that the promisor
was legally bound to do.
3. it is a promise to pay for a time barred debt.
Further, in the case of a past service on request without any promise to pay, it is
construed that there is an implied promise to pay only the amount of payment is
not fixed. Thus, a promise to pay for a past service upon request is a valid contract.
In the case of Sri Sandhi Ganpatji vs Abraham, it was held that services
rendered to a minor, which were continued after his majority upon his request is a
valid consideration for a promise to pay.
Privity of Consideration
In India, the first rule is not followed at all. In fact section 2(d) specifically says
that consideration can be provided by the promisee or any other person. This was
held in the case of Chinnaya vs Ramaya 1882.
Privity of Contract
In the case of Tweddle vs Atkinson 1882, it was held by the privy council that the
person who is not a party in the contract cannot sue. SC in the case of MC
Chacko vs State Bank of Travancore 1969 has adopted the same principle and
held that the since the bank was not a party to the contract between the father and
the son, it cannot enforce the contract.
However, based on Privy Council's observation of the culture in terms of marriage
and family relationship, in the case of Kwaja Mohd. Khan vs Hussaini Begum
1910, some exceptions to this rule have been accepted.
1. Trust or Charge
When an agreement forms a trust for the benefit of a third person, the third person
can enforce the agreement. This was held in the case of Kwaja Mohd. Khan vs
Hussaini Begum 1910 as well as in Rana Uma Nath Bakhs Singh vs Jung
Bahadur AIR 1938.
3. Acknowledgement or Estoppel
Where by the terms of a contract a party is to make payments to a third party and
the party acknowledges this to the third party, a binding obligation is created
towards him. This was held in the case of Devraja Urs vs Ram Krishnaiya AIR
1952.
Question
"No consideration,No contract" Explain with exception.
Question Submitted By :: Jayanta Kr. Das I also faced this Question!! Rank Answer Posted
By Re: "No consideration,No contract" Explain with exception. Answer
#1
Consideration:-
Consideration for a particular promise exists where some
right, interest, profit or benefit accrues (or will
accrue)
to the promisor as a direct result of some forbearance,
detriment, loss or responsibility that has been given,
suffered or undertaken by the promisee. The consideration
must be executory or executed, but not past.
Consideration
is executoryConsideration can be anything of value (such
as
an item or service), which each party to a legally-
binding
contract must agree to exchange if the contract is to be
valid. If only one party offers consideration, the
agreement is not legally a binding contract. In its
traditional form, consideration is expressed as the
requirement that in order for parties to be able to
enforce
a promise, they must have given something for it (quid
pro
quo): something must be given or promised in exchange or
return for the promise.
contract:-
A contract is an exchange of promises between two or more
parties to do or refrain from doing an act which is
enforceable in a court of law. It is where an unqualified
offer meets a qualified acceptance and the parties reach
Consensus In Idem. The parties must have the necessary
capacity to contract and the contract must not be either
trifling, indeterminate, impossible or illegal.
• completed gift;
• creation of agency
• completed gift;
• creation of agency
"contract"
http://www.scribd.com/doc/49585274/Group-6-Law-PPT