Multiple Choice Questions:
1. Consideration must move at the desire of —
(a) the promisor. (b) the promisee.
(c) promisor or any third party. (d) both the promisor and the promisee.
Ans: (a) the promisor.
2. Consideration —
(a) must move from the promisee. (b) may move from the promisee or any other person.
(c) may move from the third party. (d) may move from the promisor.
Ans: (b) may move from the promisee or any other person.
3. Consideration —
(a) must be adequate to the promise made.
(b) need not be adequate to the promise made.
(c) must be of reasonable value.
(d) must be of more value than the value of promise made.
Ans: (b) need not be adequate to the promise made.
4. Consideration must be something which the promisor —
(a) is already bound to do. (b) is not already bound to do.
(c) may voluntarily do. (d) must not do.
Ans: (b) is not already bound to do.
5. Compromise of dispute claims —
(a) is a good consideration for a contract. (b) is not a good consideration for a contract.
(c) results in a void agreement. (d) is not permitted by law.
Ans: (a) is a good consideration for a contract.
6. A promise to compensate, wholly or in part, a person who has already voluntarily done something for the promisor is —
(a) enforceable. (b) not enforceable because it is without consideration.
(c) void. (d) voidable.
Ans: (a) enforceable.
7. A person who is not a party to a contract —
(a) cannot sue. (b) can sue.
(c) can sue only in well-recognised cases. (d) None of these.
Ans: (c) can sue only in well-recognised cases.
8. Consideration in a contract —
(a) may be past, present or future. (b) may be present or future only.
(c) must be present only. (d) must be future only.
Ans: (a) may be past, present or future.
9. An agreement made without consideration is —
(a) valid. (b) illegal. (c) voidable. (d) void
Ans: (d) void
True or False Questions:
1. Consideration must result in a benefit to both the parties to a contract. [False]
2. An act constituting consideration must have been done at the desire or request of the promisor or a third party. [False]
3. Consideration may move from the promisee or any other person. [True]
4. Past consideration is no consideration. [False]
5. Consideration must be something to which the law attaches value and it must be equivalent in value to the promise made. [False]
6. Forbearance to sue is a kind of abstinence which is recognised as a good consideration. [True]
7. A person who is not a party to a contract cannot sue upon it even if the contract is for his benefit. [True]
8. A stranger in whose favour a charge on some specific immovable property has been created may enforce it. [True]
9. A written and registered agreement based on natural love and affection between near relatives is enforceable without consideration. [True]
10. No consideration is necessary to create an agency. [True]
11. A stranger to a contract cannot sue. [True]
12. A promise to contribute to charity is supported by consideration. [False]