Consider the following statements: 1. Performance of a legal duty is no consideration of promise 2.…
All three statements state settled rules of consideration, so the answer is "1, 2, 3". Doing what one is already bound by law to do is no consideration for a promise, and a…
Choose your answer
Consider the following statements:
1. Performance of a legal duty is no consideration of promise
2. Forbearance to sue has always been regarded as valuable consideration
3. It is not necessary that consideration should be adequate to the promise. Which of the above statements are correct?
Answer and explanation
Correct answer C
All three statements state settled rules of consideration, so the answer is "1, 2, 3". Doing what one is already bound by law to do is no consideration for a promise, and a bona fide forbearance to sue on a claim is good consideration. Under Explanation 2 to section 25 of the Indian Contract Act, 1872, an agreement to which consent is freely given is not void merely because the consideration is inadequate.
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