Consideration

Question 1

Consideration

Answer 1

when at the desire of the promisor, the promisee or any other person has done or abstain from doing, does or abstains from doing, promises to do or abstains from doing, something, such act or abstinence or promise is called a promise for the consideration.

promisor- the party who makes the promise
promisee- who recieves the promise

Question 2

Legal rules as to consideration

Answer 2

1. it must move at the desire of the promisor
2. it may move from the promisee or any other person
3. it may be an act, abstinence(stopping yourself from doing or having) or forbearance, or a return promise
4. it may be past, present or future
5. it need not be adequate
6. it must be real and not illusory
7. it must be something which the promisor is not already bound to do
8. it must not be illegal, immoral or opposed to public policy.

Question 3

Stranger to Contract

Answer 3

Doctorine of Privity of contract is the policy that exists between two or more parties

Question 4

Exception to stranger to a Contract

Answer 4

1. a trust or charge
2. marriage settlement, partition, or other family arrangements
3. acknowledgement or estoppel
4. assignment of a contract
5. contracts entered into through an agent
6. covenants running with the land

Question 5

A Contract without consideration is void- Exceptions

Answer 5

1. Agreement out of love and affection
2. compensation for voluntary services
3. promise to pay a time barred debt
4. completed gift
5. agency
6. charitable subscription

Question 6

Consent

Answer 6

it means acquiescence or act of assenting to an offer. two or more persons are said to consent when they agree upon the same thing in the same sense.

Question 7

free consent

Answer 7

Consent is said to be free when it is not caused by coercion, undue influence, mistake/ fraud or misrepresentation