Multiple choice

Which of the following are the promises which form the consideration or the part of consideration for each other?

  1. Reciprocal promises

  2. Mutual promises

  3. Contingent promises

  4. Both 1 and 2

  5. None of the above
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A Correct answer
Explanation

When both parties of a contract (promisor and promisee) fulfil the legal obligations which are created under a contract, it is called performance of contract. These promises which form consideration or the part of the consideration for each other are called reciprocal promises. As per Section 2(f) of the Indian Contract Act, promises which form the consideration or the part of consideration for each other are called reciprocal promises.

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