Q1. Explain the characterstics of law and breifly describe the sources of indian Law. Ans: Characteristics of law: 1.

Law is a body of rules. These rules prescribe the conduct, standard or pattern to which actions of the persons in the state are required to conform. However,all rules of conduct do not become law in the strict sense. We resort to various kinds of rules to guide our lives. For example, our conduct may be guided by a rule such as “do not be arrogant” or “do not be disrespectful to elders or women”. These are ethical or normal rules by which our daily lives are guided. If we do not follow them, we may lose our friends and their respect, but no legal action can be taken against us. 2. Law is for the guidance or conduct or persons-both human and artificial. The law is not made just for the sake of making it. The rules embodied in the law are made, so as to ensure that actions of the persons in the society conform to some predetermined standard or pattern. This is necessary so as to ensure continuance of the society. No doubt, if citizens are ‘self enlightened’ or ‘self-controlled’, disputes may be minimized, but will not be eliminated. Rules are, therefore, drawn up to ensure that members of the society may live and work together in an orderly manner. Therefore, if the rules embodied in the law are broken, compulsion is used to enforce obedience, and certain consequences ensure. 3. Law is imposed. Law is imposed on the members to bring about an order in the group, enabling it to continue and prosper. It is not something which may or may not be obeyed at the sweet will of the members of society. If you cannot impose a rule it is better not to have it. Thus, law is made obligatory on the members of the society. 4. Law is enforced by the executive. Obviously, unless a law is enforced it ceases to be a law and those persons subject to it will regard it as dead. For example, if A steals B’s bicycle, he may be prosecuted by a court and may be punished. Also, the court may order the restitution of the bicycle to its rightful owner i.e., B if the government passes many laws but does not attempt to enforce them, the citizens lose their respect for government and law, and society is greatly weakened. The force used is known as sanction which the state administers to secure obedience to its laws. 5. The state. A state is a territorial division, with people therein subject to a uniform system of law administered by some authority of the state. Thus law presupposes a state. 6. Content of law. The law is a living thing and changes throughout the course of history. Law responds to public opinion and changes accordingly. Law can never be static. Therefore, amendments are made in different laws from time to time. For example, the monopolistic and restrictive Trade Practices Act, 1969, has been subjected to many amendments since its inception in 1969. 7. Two basic ideas involved in law. The two basic ideas involved in any law are: (i)to maintain some form of social order in a group and (ii) to compel members of the group to be within that order. These basic ideas underlie formulation of any rules for the members of a group. A group is created because first, there is a social instinct in the people to live together and secondly, it helps them in self-

Thus. it becomes a custom. it is the duty of the judges to follow the same. the non-observance of which may lead to social boycott. hot war. as administered by Indian courts. The literal meaning of this phrase is “stand by the decision”. Customary law: Customs have played in important role in making the law and therefore are also known as customary law. the courts are required to apply the personal law of the parties. fines. only such decisions which lay down some new rules or principles are treated as judicial precedents. This law is created by legislation such as parliament and state legislatures to promulgate law for the guidance or conduct of persons to whom the state is expressly or by implication. “it is the uniformity of conduct of all persons under like circumstances”. Personal law: Many times. However. were there is a settled rule of law. It is called statute law because it is the writ of the state and is in written form ( jus scriptum). . so that the group doesn’t whither away. In simple words. ‘Customary law’. imprisonment. may be defined as ‘those rules of human action. This known as the doctrine of ‘stare decisis’. 8. Sources of Indian law : The main of modern Indian law. the non-observance of which may lead to public ridicule. made applicable. proxy war etc. trade sanctions.an important source of law: The statutes or the statutory law or the legislation is the main source of law. Rules of international law. (ii) Secondary sources. It is a generally observed course of conduct by people on a particular matter. may be divided into two broad categories: (i) Primary sources and.preservation. which are adopted by the courts and applied as sources of law because they are generally followed by the political society as a whole or by some part of it”. It is based on the principle that a rule of law which has settled by a series if decisions generally should be binding on the court and should be followed in similar cases. established by usage and regarded as legally binding by those to whom the rules are applicable.. (ii) Law of the land the non-observance of which may lead to arrest. These rules a law are known as judicial precedents. ‘Statute’. (iii). cold war. Judicial precedents are an important source of law: Judicial precedents are another important source of law. etc. It is sometimes called ‘enacted law’ as it is brought into existence by getting Acts passed by the legislative body. When a particular course of conduct is followed again and gains. a point of issue between the parties to a dispute is not covered by any statute or custom. Law is made to serve some purpose which may be social economic or political. Rules are made by the members of the group. in the words of keeton. In such cases. they cannot substitute their opinions for the established rule of law. Some examples or ‘law’ in its widest sense may include: (i) Moral rules or etiquettes.

no did we ever had separate courts ( as in England ) administering ‘equity’. Secondary sources of Indian law: The secondary sources of Indian law are English law and justice. the principles of equity come handy to the judges who exercise their discretion often on equitable considerations. English law is not very important source of Indian law. however. In an agency contract. Nowadays. To conduct the business of agency according to the principal’s directions : The duty of the agent is not supposed to deviate from the directions of the principal even for the principal’s benefit. (iii) the law merchant and (iv) The statute law. Mohammedan and Christians. Equity and good Conscience. . 1932. For example. in its application to India. what will be suman’s rights and duties? Explain . i.Suman is an agent. But the equitable principles of law. the Indian Partnership Act. The English law. whereas any surplus must be accounted for to the principal. equity and good conscience: In India we do not have. the courts in India look English decisions on the point.e . If he does so. the scale of goods important Acts relating to business transactions. Q2. The frequent use of terms such as ‘good faith’. there is some doubts as to the interpretation of any provisions of these Acts or where certain braches of the law Merchant have not been codified. where law is silent on any point or there is some lacuna in a stature. The duties of agent towards his principal are: 1. the greater part of the law merchant has been codified in India. Especially. for guidance.. ‘public policy’. any loss occasioned thereby shall to be borne by the agent.Thus in certain matters. we follow the personal laws of Hindus. has to conform to the peculiar bulk of out law is based on and follows the English law. ‘public interest’. Are the guiding force behind most of the statutes in our country and the decisions of the courts. justice equity and good conscience. English law The chief sources of English are: (i) the common law (ii) Equity. Justice.1872. Where. Duties and Rights of Agent. yet in its application provision on a particular problem in the primary sources of Indian law that it my look to subsidiary sources such as the English law. In statutes and by the judges in their judgments is based on principles of equity. The Indian contract Act.

Agent should not deliver to the principal all moneys including secret commission received by him. Agent is entitled to his agreed commission or remuneration and if there is no agreement. except where there is a contract. Agent may retain. everything consistent with the proved facts will be presumed against him. But the remuneration does not become payable unless he has carried out the object of agency. 5. do with regard to his own business. however. 3.the word ‘lien’ means retaining possession. agent is entitled to retain goods. 9. Not to make any secret profits. 8. 3. deduct his lawful expenses and remuneration. By a special contract. Rendering of accounts does not mean showing the accounts. Agent should not deal on his own account without first obtaining the consent of his principal. until the amount due to himself for commission. papers and other property. Not to disclose confidential information supplied to him by the principal. He becomes agent by necessity. under similar circumstances. To render proper accounts. it . 6. the agent can do all that a reasonable man would. If the agent fails to keep proper accounts of the principal’s business. 4. Right of lien. Rights of agent:Agent has a number of rights are: 1. in communicating with his principal and in seeking to obtain his instructions. If he does so. This is known as agent’s right of retainer. in case of difficulty. all moneys due to himself in respect of advances made or expenses properly incurred by him in conducting such business and also such remuneration as may be payable to him for acting as agent. the principal can claim from the agent any benefit which he might have obtained . to use all reasonable diligence. To communicate with the principal in case of difficulty: it is the duty of agent. disbursements and services in respect of the particular goods and property. however. 2. whether movable or immovable of the principal received by him. agent may get a general lien extending to all claims arising out of the agency. but maintaining proper accounts supported by vouchers. Right to remuneration. In the absence of any contract to the contrary. to a reasonable remuneration. He can. The agent has to render proper accounts. Right of retainer. Since . The agent should conduct the business with the skill and diligence: That is generally possessed by persons engaged in similar business. out of any sums received on account of the principal in the business of the agency. In case of emergency. 7.2. To take all reasonable steps for the protection and preservation of the interests entrusted to him when the principal dies or becomes of unsound mind. Not entitled to remuneration for misconduct: Agent who is guilty of misconduct in the business of agency is not entitled to any remuneration in respect of that part of the business which he has misconducted. Not to deal on his own account. except where the principal knows that the agent is wanting in skill. When the object of agency is deemed would depend on the terms of the contract. however.

e. his lien is not affected by the loss of possession. Rights of the indemnified : He is entitled to recover from the promisor : (i) All the damages which he may be compelled to pay in any suit in respect of any matter to which the promise to indemnity applies. 5. The agent can stop the goods while in transit in two cases: (a) where he has purchased goods on behalf of the principal either with his own funds.. therefore. provided in bringing or defending the suit (a) he acted under the authority of the indemnifier or (b) if he did not act in contravention of orders of the indemnifier and in such a way as a prudent man would act in his own case. Indemnity means to make good the loss or to compensate the party who has suffered some loss. What is contract of indemnity? Explain ? b. All sums which may gave been paid under the terms of any compromise of any such suit. Q3. But if the possession is obtained from the agent by fraud or unlawful means. . Where agent holds himself liable to his principal for the price of the goods sold. he enjoys the right of stopping the goods in transit if in the meantime the principal has become insolvent. be lost where he parts with the possession of goods or papers.can be enjoyed by the agent only where the goods or papers are in actual or constructive possession of the agent. Like an unpaid seller. Right of indemnification. a). or by incurring a personal liability for the price. The principal is bound to indemnify agent against the consequences of all lawful acts done by the agent in exercise of authority conferred on him. a. if he compromise was not contrary to the orders of the indemnifier and was one which it would have been prudent for the promise to make. the duty of a principal to indemnity an agent from consequences of all lawful acts done by have all the essentials of a valid contract. (iii). he stands towards the principal in the position of an unpaid seller. Mention the features of different kinds of gurantees. A contract of insurance is a glaring example of such type contracts. “Indemnity is not necessary given by repayment after payment. (ii). The right lien will. All costs of suit which he may have to pay such third party. A contract of indemnity may arise either by (i) an express promise or (ii) operation of law. Sec 124 provides that a contract of indemnity is a contract whereby one party promises to save the other from loss caused to him (the promisee) by the conduct of the promisor himself or by the conduct of any other person.g. The indemnifier promises to make good the loss of the indemnified. What is contract of indemnity? Explain? Meaning of indemnity: Secs 124 and 125 provide for a contract of indemnity. Right of stoppage in transit. 4. Indemnity requires that the party to be indemnified shall never be called upon to pay”. These are two parties in a contraction of identity indemnifier and indemnified. (b).

if it is intended to be applicable to a particular debt and thus comes to end on its repayment. In france and italy. 1889. A guarantee is a “specific guarantee’. Each partner should possess a copy of the deed. in the absence of any contract to the contrary. USA and India. Partnership agreement and contract law: . Kinds of guarantee: Oral or written guarantee: A contract of guarantee may either be oral or written . should always prefer to put it in writing to avoid any dispute regarding the terms. they law requires all partnership agreement is to be in writing. The death of the surety operates. But in order to avoid misunderstanding and litigation. However. continuing guarantee cannot be revoked regarding transactions that have ready taken place. But in England. A guarantee which extends to be series of transactions is called a “continuing guarantee”.Mention the features of different kinds of guarantees. Divya. The partnership deed is required to be stamped according to the provisions of the stamp Act. it is desirable to enter into a written agreement which is called Partnership deed or agreement. In case of an oral agreement the existence of the agreement itself is very difficult to prove. a continuing guarantee can be revoked regarding further transactions. Vidya and Rajendra want to start a partnership firm dealing with designer jewelery. Specific and continuing guarantee: From the point view of the scope of guarantee a contract of guarantee may either by specific or continuing. Partnership deed: A partnership can be formed by either by oral or written agreement. Q4.though a creditor. Unlike a specific guarantee which is irrevocable. written agreement is not compulsory. so far as regards future transactions.b). A specific guarantee once given is irrevocable. etc. Explain to them the different elements in a partnership deed and other aspect of partnership firm. as a revocation of a continuing guarantee. A guarantee regarding the conduct of another person is a continuing guarantee. A guarantee may either be for the whole debt or a part of the debt Difficult questions arise in case of guarantee for a limited amount of because there is an important distinction between a guarantee for only a part of the whole debt and a guarantee for the whole debt subject to a limit.

the provisions of the Indian Contract Act. But at the same time sec. Sec. or delivering to the Registrar of firms of the area in which any place of business of the firm is situated or proposed to be situated.58 have been duly complied with.12(c) provides that subject to contract between the partners no change may be made in the nature of the business without the consent of all the partners. it comes to an end. a statement in the prescribed form and accompanied by the fee. A publisher agreed to publish.69 has effectively. When the fixed period is over. He then issues under his hand a certificate of registration. stating: (i) the firm’s name (ii) the place or principal place of business of firm (iii) the names of any other places where the firm carries on business. are applicable to it.Sec. The firm cannot. Registration is effective from the date when the Registrar files the statement and makes entries in the Registrar of firms. the partners may carry on the business even after the expiry of the fixed period and the partnership becomes ‘partnership at will’. 1872. a book written by B and to share the profits equally. (ii) change in the nature of business or undertakings and (iii) change in the constitution of a firm. Registration of partnership firm: A partnership firm may be registered at any time by post. It is optional there is no penalty for non-registration.2(e) provides that “expressions used not defined in this Act and defined in the Indian contract Act. ensured registration of firms by introducing certain disabilities that an unregistered firm suffers from. (iv) the date when each partner joined the firm. (v) the names in full and addresses of the partners and (vi) the duration of the firm. he register of firms and shall file the statement. However.3 provides that the unrepealed provisions of the Indian contract Act. at his own expenses. When the Registrar of firms is satisfied that the provisions of sec. 1872 save continue to apply to firms. 1 . or their agents especially authorized in that behalf and duly verified. Registration of firms is optional: The Act does not provide for compulsory registration of firms. Changes in a firm: The Act contemplates the following changes in a firm: (i) change in the duration of a firm. As a partnership agreement is a contract. Also sec. B wanted to terminated the partnership by notice after publi1cation of tenth edition of the book. 1872. shall have the meanings assigned to them in that Act”. The statement must be signed by all the partners. A partnership may be entered into for a fixed period of time.

if seller is under an obligation to deliver goods.39 provides that the dissolution of partnership between all the partners of a firm is called the “dissolution of the firm”. 2. Dissolution of partnership may be involve merely a change in relation of the partners and not the dissolution of the firm. but dissolution of partnership need not lead to dissolution of firm. But if the partnership relates to more than one adventure. b. By the insolvency of all the partners but one. As unpaid seller. at any time. By business becoming illegal. By mutual consent. Sec 41 provides that firm is dissolved by the happening of any event which makes it unlawful for the business of the firm to be carried on or for the partners to carry it on in partnership. there is a dissolution of the firm. Sec 41 also covers cases of partnership between persons some of whom become alien enemies by a subsequent declaration of war. There is no question of reconstituted firm in such a case.Dissolution of firm and dissolution of partnership: Sec. the illegality of one or more of them does not prevent the lawful adventure from being carried on by the firm. dissolution of firm always implies dissolution of partnership. . This applies to all cases whether the firm is for a fixed period or otherwise. By agreement. 4. it would not amount to “dissolution of firm”. In such a case partnership is dissolved. It follows that if the dissolution of partnership is not between all the partners. Q5. Sec 40 also provides for the dissolution of firm in according with a contract between the partners. A firm may be dissolved in any of the following ways: 1. Sec 40 provides that a firm.Explain the rights of unpaid seller. Sec 41 calls this as compulsory dissolution. 5. What are the remedies available for breach of contract? Unpaid seller and his Rights: A contract is comprised of reciprocal promises. 3. In a contract of sale. shall have certain rights. the seller. Partners becoming alien enemies. buyer has to pay for it. it is called dissolution of the firm. In case buyer fails or reuses to pay. If all the partners or all the partners but one become insolvent. be dissolved with the consent of all the partners. because trading with an alien enemy is against public policy. Thus. Dissolution of firm: When the relationship existing between all the partners of the firm comes to an end. The contract providing for dissolution may have been incorporated in the partnership deed itself or in a separate agreement. but it would nevertheless be “dissolution of partnership”. It naturally involves closing down the business. a.

54) The unpaid seller. The right of stoppage in transit is earned only where the right of lien is lost and is available only where the buyer has becomes insolvent. (b) What are the remedies available for beach of contract? In addition to the rights of a seller against goods provided in secs. retaining them till the price is paid. namely. (ii) a bill of exchange or other negotiable instrument has been received as conditional payment and the condition on which it was received has not been fulfilled by a reason of the dishonour of the instrument or otherwise. 1930: (a) rights against the goods.1872. namely. (a) where the goods have been sold without any stipulation as to credit. namely: (i) Rights under the secs. (a) where the goods have been sold without any situations. An unpaid seller who is in possession of goods is entitled to retain them in his possession until payment or tender of the price in three situations. (c) where the buyer becomes solvent. can resell the goods. 47 to 54.Who is an unpaid seller: A seller of goods is an unpaid seller when (i) the whole of the price has not been paid or tendered. (i) suit for price (ii) damages for non-acceptance of goods (iii) suit for interest. Right of stoppage in transit. Lien can be exercised only for non-payment of the price and not for any other charges due against the buyer. The rights against the goods are as follows: Lien on goods (sec -47. Right of resale (sec. to recover damages for breach of contract. (b) rights against the buyer personally. without any notice to the buyer and (ii) in other cases after notice to buyer calling upon him to pay or tender the price within a reasonable time and upon failure of the buyer to do so. who has retained the possession of the goods in exercise of his right lien or who has resumed possession from the carrier upon insolvency of the buyer. 73-74 of the Indian Contract act .49) The word lien means to retain possession of. but the term of credit has expired. (i) if the goods are of a perishable nature. (ii) Rights under the sale of Goods Act. The right of the unpaid seller consists in preventing the goods from being delivered to the buyer and resuming and regaining their possession while in transit. . the seller has the following remedies against the buyer personally. Rights of an unpaid seller: The rights of an unpaid seller may broadly be classified under two heads. (b) where the goods have been sold on credit.

In the absence of a contract to the contrary. It is obvious that the unpaid seller can claim interest only when he can recover the price. Suit for interest: When under a contact of sale. the court may award interest at such rate as it thinks fit on the amount of the price. The amount of damages is to be determined in accordance with the provisions laid down in sec. 1872. the seller can only sue for damages and not for the price. (iv) suit for breach of condition. the seller has a further right to claim interest on the amount of the price. the difference between the market price and the contract price can be recovered. b. as a rule. But the contract is made only with . (iii) specific performance. Suit for damages for non-acceptance: Where the buyer wrongfully neglects or refuses to accept and pay for the goods. the seller tenders the goods to the buyer and the buyer wrongfully refuses or neglects to accept and pay the price. if the seller’s remedy is to claim damages only then the cannot claim interest. 1 a) An offer may be general or specific: According to Sec. the seller can sue the buyer for the price of the goods.Suit for price: Where under a contract of sale the property in the goods has passed to the buyer and the buyer wrongfully neglects or refuses to pay the price. his only remedy is to claim damages. An offer may be made to the world at large. a. 2 (a) an offer must be made to a specific person. The interest may be calculated from the date of the tender of the goods or from the date on which the price was payable. Discuss the essentials of a valid contract. What is consideration? Give some examples. Where the property in the goods has not passed to the buyer and the price was not payable without passing of property. (vii) recovery of interest. (v) suit for breach of warranty (vi) anticipatory breach. the seller cannot file a suit for the price.73 of the Indian contract Act. the seller may sue him for damages for non-acceptance. Buyer’s remedies against seller The buyer has the following rights against the seller for breach of contract: (i) damages for non-delivery (ii) right of recovery of the price. Thus. where is an available market for the goods prima facie. Where the property in goods has not passed to the buyer. Q6.

If some of the essential terms of a bargain may not be specified but are capable of being determined by some method other than by a future agreement there will be a good contract between the parties. . A cannot sue Mr. 8 d) A statement of intention and an invitation to offer are not offers: Preliminary negotiations are likely to take place before entering into an agreement. Such a declaration by itself does not become an offer.. A tells B ‘I want to sell my car’. moral or religious agreements are not legally enforceable. This is not an offer. e. Mr. For example. Anson expressed ‘The law requires the parties to make their own contract. This is so because the courts cannot say what the parties to the contract are to do and whether there is violation of the contract. B for unconsumed food.the person who accepts and fulfills the conditions of the proposal. all the terms of an offer need not be expressed. 3 In Carlill Vs Carbolic Smoke Ball Co. The test of contractual intention is objective and not subjective. Mr. The court has to ascertain the intention of the parties. B to dinner. a Company offered by advertisement to pay £100 to any one who contacts the increasing epidemic influenza. A invites Mr. Mr. (1893). is generally accepted as vital to form a legal agreement.g. but no contract can arise until it has been accepted by an ascertained person‘. The plaintiff used the smoke mokeball as per the directions but subsequently suffered from influenza. ‘An offer need not be made to an ascertained person. 6 c ) An offer must be definite and certain: The terms of an offer should not be uncertain and ambiguous. B fails to attend. 2 In the words of Anson. Social. In the course of such negotiations one party may make some declarations regarding his intention of doing something. it will not make a contract for them out of terms which are indefinite or illusory ‘. What is considered is not what the parties had in mind but what a reasonable person would think in the circumstances their intentions to be. cold or any disease caused by taking cold after having used the ball as per printed directions. 5 Whether the offeror intended to enter into legal obligations or not could be known from the nature of the agreement and the surrounding circumstances. 4 b) An offer should be made with an intention of creating legal obligation: This principle of English law though not incorporated specifically under Section 10. She was held entitled to recover the promised reward. 7 However. It was added that ‘£1000 is deposited with the Alliance Bank showing our sincerity in the matter’.

an announcement about the stock of goods for sale. A can’t sue B for remuneration since B’s consent can’t be presumed from his silence. 11 The Act does not indicate the mode of communication. There can be no acceptance unless there is knowledge of the offer. 13 When the offer is not communicated silence on the part of the offeree does not amount to consent since he does not have the opportunity to reject the offer. However. landlords. E. public utilities etc. tailors. mere knowledge of a proposal does not amount to communication unless the offeree acquires it with express or implied intention of the offeror. Under Section 4 ‘the communication of a proposal is complete when it comes to the knowledge of the person to whom it is made‘. However. Freedom of contract becomes one-sided in the case of agreements with common carriers. The offeror may communicate the offer by choosing any available means. are merely invitations to offer or offers.g. Such forms contain large number of terms and conditions very often small in print absolving the dominant party of all liability. However. The Court too finds it difficult at times to protect the interest of the weaker party. In Lalman Shukla Vs. Therefore the courts have evolved certain . printed forms of agreements known as ’standard form contracts’ are used. display of goods in shop windows. insurance companies. But as regards reward cases the question arises whether the person performing the conditions of the offer can claim the reward even if he is ignorant of the offer. prospectus of a company. price-lists. Communication is necessary whether the offer is specific or general. 14 f) The terms and conditions of offer should also be communicated: An agreement is a two-sided bargain based on freedom of contract. The economically weaker party has to accept all such terms and conditions irrespective of whether he likes them or not. catalogue. in modern times the buyer of an article is in an unfavourable position. a letter containing an offer which is never mailed is not an offer even if the contents are known by the offeree in some manner. An advertisement for tenders for sale of goods by auction. A works for B without the request or knowledge of B. Gouri Dutt case it was held that knowledge of the offer is essential. dry cleaners.. 12 General offers are communicated to public through notice and advertise-ments.9 An invitation to offer is not an offer. It is also difficult to draw up a separate agreement with each individual. loudspeaker announcements etc. Therefore. 10 E )An offer must be communicated to the offeree: An offer becomes operative only when it has been communicated to the person to whom the offer is made.

now refuses to pay her amount P. 16 g) Two identical offers do not make a contract: An offer made by a person may cross a similar one made by another person of course in the course of transit. that if the offeree does not communicate before a given time. damage. They are just two identical or cross offers. with the specific directions that she should pay P. for example. b. No consideration. suffered or undertaken by the other party. interest or profit accruing to one party.methods. a sum of Rs. loss or responsibility given. 17 h) An offer should not contain any term the noncompliance of which amounts to acceptance: There may be any number of terms and conditions in an offer. 15 On the other hand if the acceptor knew that there was writing and knew or believed that the writing contained conditions he is then bound by the conditions even though he did not read them. who is the sister of the old lady. 100 per month. made over certain property to her daughter D. A person who makes a promise to do or abstain from during something usually does so as a return of equivalent of some loss. In simple terms consideration is what a promisor demands as the price for his promise. what is consideration? Give examples. It is enough if the offeror has done all that can be considered necessary to give notice to the acceptor. Ex: X an old lady. The term consideration is used in the sense of quid pro que. When the offer contains special terms and conditions the offeror must communicate all the terms and conditions either before or at the time of contracting in order to bind the acceptor. The acceptor can accept or reject them. One of the essential elements of a valid contract is that it must be supported by consideration. This ‘something” or consideration need not be in terms of money. the above amount on the plea that no . He can’t say. D. detriment. though there seems to be identity of mind. Also a promise by one party may be consideration for the promise of other party. right. by a deed of gift. no contract: A promise without consideration cannot create legal obligation. This “something may even be some benefit. he is deemed to have accepted the offer. The same day D entered into an agreement with P to pay her the agreed amount. While the offeror can prescribe mode of acceptance. or inconvenience that may have or may have been occasioned to the other party in respect of the promise. terms of money. or some forbearance. he can’t prescribe the form or time of refusal so as to fix a contract upon the acceptor.

P therefore. sues D.consideration had move from P to D. is the suit maintainable and can D he held liable to pay the amount? .

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