Multiple choice

Which of the following is not an exception to the maxim 'no consideration, no contract'?

  1. Promise made on account of love and affection

  2. Contract of agency

  3. Complete gifts

  4. Pension given to retired employee

  5. Contract of guarantee given to bank for the loan taken by friend
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

It is the correct answer. The pension given to retired employee is an example of past consideration, i.e. services given in the past.

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