All India Bar Examination (AIBE) 5-V Previous Year Question Papers with Answers

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97.

According to the Indian law in a lawful contract, consideration

A: Must move from promisee only
B: May move from promisee or any other person
C: is not necessary at all
D: None of the above

The answer is: B

Explanation

The correct option is B: May move from promisee or any other person.

According to the Indian Contract Act, 1872, consideration is defined as "when, at the desire of the promisor, the promisee or any other person has done or abstained from doing, or does or abstains from doing, or promises to do or to abstain from doing something, such act or abstinence or promise is called a consideration for the promise" .

This means that consideration can move from the promisee, who is the person to whom the promise is made, or from any other person, who is not a party to the contract but has some interest in it.

The Indian law allows this flexibility to avoid injustice and hardship in cases where a third party has a stake in the contract. Therefore, option B is the correct answer.

Option A is incorrect because it follows the English law, not the Indian law. Option C is incorrect because consideration is one of the essential elements of a valid contract, and an agreement without consideration is void, unless it falls under some exceptions. Option D is incorrect because it does not provide any answer.