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A promises to pay B 1,000 rupees at the end of six months if C, who owes that sum to B, fails to pay…

Illustration (b) to section 23 states that "the promise of each party is the consideration for the promise of the other party, and they are lawful considerations." Under…

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A promises to pay B 1,000 rupees at the end of six months if C, who owes that sum to B, fails to pay it. B promises to grant time to C accordingly. What is the consideration for A's promise?

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Correct answer A

Illustration (b) to section 23 states that "the promise of each party is the consideration for the promise of the other party, and they are lawful considerations." Under section 2(d) consideration is something done or promised "at the desire of the promisor" by the promisee or any other person; it need not benefit the promisor, so B's promise to give C time supports A's promise. C's default is only the event on which A must pay, not the price of his promise.

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