Multiple choice

A contract between A, B and C was executed whereby A pays money to B for delivering some goods to C. C has not paid any consideration. Can C enforce the agreement?

  1. Yes, as he is the beneficiary of trust.

  2. Yes but the same can only be done jointly with A.

  3. No as C did not pay the consideration.

  4. A and only A can enforce the agreement.
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

Under Indian Contract Act, a beneficiary (C) can enforce a contract even without providing consideration, as an exception to privity of contract. This allows third-party beneficiaries to sue when parties intend to benefit them. Option A correctly states this beneficiary rule.

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