Multiple choice

Which of the following is not correct?

  1. Consideration must be at the desire of the promisor.

  2. Consideration may be past, present or future.

  3. Consideration need not be adequate, but should be real and supported by free consent.

  4. Consideration should be always monetary.
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

Statement D is incorrect because consideration need not be monetary. Consideration can be any act, abstinence, or promise - it must have some value in the eyes of law but need not be adequate or monetary. A promise to exchange non-monetary things constitutes valid consideration. Section 2(d) defines consideration broadly as doing or abstaining from doing something.

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