Multiple choice

Which of the following statement is true?

  1. Consideration must result in a benefit to both parties.

  2. Past consideration is no consideration in India.

  3. Consideration must be adequate.

  4. Consideration must be something, which a promisor is not already bound to do.
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

Consideration must move from the promisee and be something of value in the eyes of the law. Option D is correct because consideration must be something the promisor is not already legally bound to do - it must be new consideration. Option A is wrong because consideration only needs to move from the promisee, not benefit both parties. Option B is incorrect - in India, past consideration CAN be valid consideration in certain circumstances (unlike English law). Option C is wrong because consideration need not be adequate - courts don't inquire into adequacy, only existence.

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