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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-
it is the duty of the judges to follow the same. may be divided into two broad categories: (i) Primary sources and. in the words of keeton. proxy war etc. cold war. Some examples or ‘law’ in its widest sense may include: (i) Moral rules or etiquettes. Personal law: Many times. “it is the uniformity of conduct of all persons under like circumstances”. imprisonment. Rules of international law. 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. It is a generally observed course of conduct by people on a particular matter. etc. so that the group doesn’t whither away. 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”. may be defined as ‘those rules of human action..an important source of law: The statutes or the statutory law or the legislation is the main source of law. were there is a settled rule of law. they cannot substitute their opinions for the established rule of law. In such cases. It is sometimes called ‘enacted law’ as it is brought into existence by getting Acts passed by the legislative body. It is called statute law because it is the writ of the state and is in written form ( jus scriptum). However. (ii) Secondary sources. ‘Statute’. a point of issue between the parties to a dispute is not covered by any statute or custom. made applicable. as administered by Indian courts. . (ii) Law of the land the non-observance of which may lead to arrest. it becomes a custom. fines. 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. The literal meaning of this phrase is “stand by the decision”. Judicial precedents are an important source of law: Judicial precedents are another important source of law. trade sanctions. (iii). 8. When a particular course of conduct is followed again and gains. This known as the doctrine of ‘stare decisis’. established by usage and regarded as legally binding by those to whom the rules are applicable.preservation. Sources of Indian law : The main of modern Indian law. These rules a law are known as judicial precedents. Law is made to serve some purpose which may be social economic or political. Rules are made by the members of the group. Thus. Customary law: Customs have played in important role in making the law and therefore are also known as customary law. only such decisions which lay down some new rules or principles are treated as judicial precedents. In simple words. the non-observance of which may lead to public ridicule. the non-observance of which may lead to social boycott. ‘Customary law’. the courts are required to apply the personal law of the parties. hot war.
the courts in India look English decisions on the point. in its application to India. Q2. Equity and good Conscience. English law The chief sources of English are: (i) the common law (ii) Equity. (iii) the law merchant and (iv) The statute law. Secondary sources of Indian law: The secondary sources of Indian law are English law and justice. ‘public interest’. Where. Justice. equity and good conscience: In India we do not have. any loss occasioned thereby shall to be borne by the agent. the scale of goods important Acts relating to business transactions. the principles of equity come handy to the judges who exercise their discretion often on equitable considerations. In statutes and by the judges in their judgments is based on principles of equity. The frequent use of terms such as ‘good faith’. where law is silent on any point or there is some lacuna in a stature. Are the guiding force behind most of the statutes in our country and the decisions of the courts. for guidance. what will be suman’s rights and duties? Explain . 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. English law is not very important source of Indian law. Mohammedan and Christians. 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. the greater part of the law merchant has been codified in India. Duties and Rights of Agent. The duties of agent towards his principal are: 1. justice equity and good conscience. ‘public policy’.Suman is an agent. 1932.Thus in certain matters. whereas any surplus must be accounted for to the principal. however. 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. For example. If he does so. has to conform to the peculiar bulk of out law is based on and follows the English law. i. Especially.e .. the Indian Partnership Act. The Indian contract Act. In an agency contract. .1872. no did we ever had separate courts ( as in England ) administering ‘equity’. The English law. But the equitable principles of law. Nowadays. we follow the personal laws of Hindus.
Not to make any secret profits. Rights of agent:Agent has a number of rights are: 1. the agent can do all that a reasonable man would. To communicate with the principal in case of difficulty: it is the duty of agent. Agent is entitled to his agreed commission or remuneration and if there is no agreement. however. Since . Not to deal on his own account. 2. Right of lien. agent may get a general lien extending to all claims arising out of the agency. papers and other property. 5. however. disbursements and services in respect of the particular goods and property. The agent has to render proper accounts. whether movable or immovable of the principal received by him. 3. Right of retainer. Not to disclose confidential information supplied to him by the principal. Right to remuneration. 6. except where there is a contract. agent is entitled to retain goods. 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. but maintaining proper accounts supported by vouchers. to use all reasonable diligence. He becomes agent by necessity. 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. If he does so. in communicating with his principal and in seeking to obtain his instructions.the word ‘lien’ means retaining possession. everything consistent with the proved facts will be presumed against him. 4. Rendering of accounts does not mean showing the accounts. out of any sums received on account of the principal in the business of the agency. deduct his lawful expenses and remuneration. In the absence of any contract to the contrary. 7. to a reasonable remuneration. When the object of agency is deemed would depend on the terms of the contract. But the remuneration does not become payable unless he has carried out the object of agency.2. He can. 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. do with regard to his own business. the principal can claim from the agent any benefit which he might have obtained . 3. By a special contract. until the amount due to himself for commission. If the agent fails to keep proper accounts of the principal’s business. 9. Agent should not deliver to the principal all moneys including secret commission received by him. This is known as agent’s right of retainer. however. except where the principal knows that the agent is wanting in skill. In case of emergency. Agent may retain. under similar circumstances. The agent should conduct the business with the skill and diligence: That is generally possessed by persons engaged in similar business. To render proper accounts. in case of difficulty. 8. Agent should not deal on his own account without first obtaining the consent of his principal. it .
he enjoys the right of stopping the goods in transit if in the meantime the principal has become insolvent. (iii). All sums which may gave been paid under the terms of any compromise of any such suit. But if the possession is obtained from the agent by fraud or unlawful means. a). or by incurring a personal liability for the price. Indemnity requires that the party to be indemnified shall never be called upon to pay”.. (ii). 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. . be lost where he parts with the possession of goods or papers. A contract of indemnity may arise either by (i) an express promise or (ii) operation of law.can be enjoyed by the agent only where the goods or papers are in actual or constructive possession of the agent. e. What is contract of indemnity? Explain? Meaning of indemnity: Secs 124 and 125 provide for a contract of indemnity. The right lien will. (b). Mention the features of different kinds of gurantees.g. What is contract of indemnity? Explain ? b. 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. A contract of insurance is a glaring example of such type contracts. 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. 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. Where agent holds himself liable to his principal for the price of the goods sold. These are two parties in a contraction of identity indemnifier and indemnified. Right of stoppage in transit. 5. 4. 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. Q3. 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. a. Like an unpaid seller. All costs of suit which he may have to pay such third party. his lien is not affected by the loss of possession. The indemnifier promises to make good the loss of the indemnified. therefore. Right of indemnification. he stands towards the principal in the position of an unpaid seller. Indemnity means to make good the loss or to compensate the party who has suffered some loss. 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. “Indemnity is not necessary given by repayment after payment.
written agreement is not compulsory. in the absence of any contract to the contrary. In case of an oral agreement the existence of the agreement itself is very difficult to prove. as a revocation of a continuing guarantee. Explain to them the different elements in a partnership deed and other aspect of partnership firm. Partnership deed: A partnership can be formed by either by oral or written agreement. A specific guarantee once given is irrevocable. But in England. if it is intended to be applicable to a particular debt and thus comes to end on its repayment. However. they law requires all partnership agreement is to be in writing. it is desirable to enter into a written agreement which is called Partnership deed or agreement. continuing guarantee cannot be revoked regarding transactions that have ready taken place. A guarantee regarding the conduct of another person is a continuing guarantee. so far as regards future transactions. 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. Divya. should always prefer to put it in writing to avoid any dispute regarding the terms. Specific and continuing guarantee: From the point view of the scope of guarantee a contract of guarantee may either by specific or continuing.b). USA and India. Q4. a continuing guarantee can be revoked regarding further transactions. Partnership agreement and contract law: . But in order to avoid misunderstanding and litigation. etc. Each partner should possess a copy of the deed.Mention the features of different kinds of guarantees. Unlike a specific guarantee which is irrevocable. Vidya and Rajendra want to start a partnership firm dealing with designer jewelery. A guarantee is a “specific guarantee’. 1889.though a creditor. The partnership deed is required to be stamped according to the provisions of the stamp Act. A guarantee which extends to be series of transactions is called a “continuing guarantee”. Kinds of guarantee: Oral or written guarantee: A contract of guarantee may either be oral or written . In france and italy. The death of the surety operates.
1 . a book written by B and to share the profits equally. However.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. A partnership may be entered into for a fixed period of time. The firm cannot. The statement must be signed by all the partners. Sec. he register of firms and shall file the statement. 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. When the fixed period is over. Registration of partnership firm: A partnership firm may be registered at any time by post.58 have been duly complied with. a statement in the prescribed form and accompanied by the fee. He then issues under his hand a certificate of registration. Changes in a firm: The Act contemplates the following changes in a firm: (i) change in the duration of a firm. B wanted to terminated the partnership by notice after publi1cation of tenth edition of the book. at his own expenses. It is optional there is no penalty for non-registration. (iv) the date when each partner joined the firm.69 has effectively.3 provides that the unrepealed provisions of the Indian contract Act. 1872. 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. or their agents especially authorized in that behalf and duly verified. the partners may carry on the business even after the expiry of the fixed period and the partnership becomes ‘partnership at will’. it comes to an end. (ii) change in the nature of business or undertakings and (iii) change in the constitution of a firm. the provisions of the Indian Contract Act. 1872 save continue to apply to firms.2(e) provides that “expressions used not defined in this Act and defined in the Indian contract Act. Registration is effective from the date when the Registrar files the statement and makes entries in the Registrar of firms. 1872. A publisher agreed to publish. ensured registration of firms by introducing certain disabilities that an unregistered firm suffers from. But at the same time sec. shall have the meanings assigned to them in that Act”. As a partnership agreement is a contract. Registration of firms is optional: The Act does not provide for compulsory registration of firms.Sec. Also sec. are applicable to it. When the Registrar of firms is satisfied that the provisions of sec. (v) the names in full and addresses of the partners and (vi) the duration of the firm.
shall have certain rights. Dissolution of partnership may be involve merely a change in relation of the partners and not the dissolution of the firm. because trading with an alien enemy is against public policy. But if the partnership relates to more than one adventure. By the insolvency of all the partners but one. Sec 41 calls this as compulsory dissolution. Sec 41 also covers cases of partnership between persons some of whom become alien enemies by a subsequent declaration of war. Sec 40 also provides for the dissolution of firm in according with a contract between the partners. By agreement. In such a case partnership is dissolved. There is no question of reconstituted firm in such a case. 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. a. dissolution of firm always implies dissolution of partnership. buyer has to pay for it. 3. Partners becoming alien enemies. It follows that if the dissolution of partnership is not between all the partners. Q5. but dissolution of partnership need not lead to dissolution of firm. If all the partners or all the partners but one become insolvent. b. As unpaid seller. the seller. it is called dissolution of the firm. the illegality of one or more of them does not prevent the lawful adventure from being carried on by the firm.39 provides that the dissolution of partnership between all the partners of a firm is called the “dissolution of the firm”. Thus. This applies to all cases whether the firm is for a fixed period or otherwise. Dissolution of firm: When the relationship existing between all the partners of the firm comes to an end. there is a dissolution of the firm.Dissolution of firm and dissolution of partnership: Sec. be dissolved with the consent of all the partners. By business becoming illegal. In case buyer fails or reuses to pay. What are the remedies available for breach of contract? Unpaid seller and his Rights: A contract is comprised of reciprocal promises. Sec 40 provides that a firm. By mutual consent. The contract providing for dissolution may have been incorporated in the partnership deed itself or in a separate agreement. . 2. 5. In a contract of sale. A firm may be dissolved in any of the following ways: 1.Explain the rights of unpaid seller. it would not amount to “dissolution of firm”. It naturally involves closing down the business. 4. but it would nevertheless be “dissolution of partnership”. if seller is under an obligation to deliver goods. at any time.
73-74 of the Indian Contract act . namely. the seller has the following remedies against the buyer personally. 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. to recover damages for breach of contract. (i) if the goods are of a perishable nature. 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.1872. but the term of credit has expired.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. Rights of an unpaid seller: The rights of an unpaid seller may broadly be classified under two heads. (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.49) The word lien means to retain possession of. 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. (ii) Rights under the sale of Goods Act. 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. . retaining them till the price is paid. Right of resale (sec. namely. (c) where the buyer becomes solvent. 47 to 54. can resell the goods. (i) suit for price (ii) damages for non-acceptance of goods (iii) suit for interest. Right of stoppage in transit. (b) where the goods have been sold on credit. namely: (i) Rights under the secs. 1930: (a) rights against the goods. 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. (b) rights against the buyer personally.54) The unpaid seller. (b) What are the remedies available for beach of contract? In addition to the rights of a seller against goods provided in secs. 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. (a) where the goods have been sold without any situations. (a) where the goods have been sold without any stipulation as to credit.
the seller can sue the buyer for the price of the goods. as a rule. Suit for damages for non-acceptance: Where the buyer wrongfully neglects or refuses to accept and pay for the goods. 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. the seller can only sue for damages and not for the price. (vii) recovery of interest. Where the property in the goods has not passed to the buyer and the price was not payable without passing of property. 1872. 2 (a) an offer must be made to a specific person. b. Where the property in goods has not passed to the buyer. The amount of damages is to be determined in accordance with the provisions laid down in sec. An offer may be made to the world at large. (v) suit for breach of warranty (vi) anticipatory breach. if the seller’s remedy is to claim damages only then the cannot claim interest. the court may award interest at such rate as it thinks fit on the amount of the price. the difference between the market price and the contract price can be recovered. But the contract is made only with .73 of the Indian contract Act. Suit for interest: When under a contact of sale. the seller tenders the goods to the buyer and the buyer wrongfully refuses or neglects to accept and pay the price. his only remedy is to claim damages. Q6. the seller cannot file a suit for the price. The interest may be calculated from the date of the tender of the goods or from the date on which the price was payable. (iii) specific performance. In the absence of a contract to the contrary. the seller has a further right to claim interest on the amount of the price. 1 a) An offer may be general or specific: According to Sec. a.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. Discuss the essentials of a valid contract. It is obvious that the unpaid seller can claim interest only when he can recover the price. (iv) suit for breach of condition. Thus. the seller may sue him for damages for non-acceptance. where is an available market for the goods prima facie. What is consideration? Give some examples.
moral or religious agreements are not legally enforceable. B to dinner. The test of contractual intention is objective and not subjective. This is not an offer. but no contract can arise until it has been accepted by an ascertained person‘. 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. The court has to ascertain the intention of the parties. (1893). 6 c ) An offer must be definite and certain: The terms of an offer should not be uncertain and ambiguous. cold or any disease caused by taking cold after having used the ball as per printed directions. It was added that ‘£1000 is deposited with the Alliance Bank showing our sincerity in the matter’. A cannot sue Mr. a Company offered by advertisement to pay £100 to any one who contacts the increasing epidemic influenza.the person who accepts and fulfills the conditions of the proposal. B fails to attend. Social. Mr. ‘An offer need not be made to an ascertained person. it will not make a contract for them out of terms which are indefinite or illusory ‘. 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. In the course of such negotiations one party may make some declarations regarding his intention of doing something. Mr. all the terms of an offer need not be expressed. is generally accepted as vital to form a legal agreement. A tells B ‘I want to sell my car’. A invites Mr. 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. 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. The plaintiff used the smoke mokeball as per the directions but subsequently suffered from influenza. 7 However. Anson expressed ‘The law requires the parties to make their own contract. 3 In Carlill Vs Carbolic Smoke Ball Co.. 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. Mr. . B for unconsumed food. For example. Such a declaration by itself does not become an offer. e. 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. She was held entitled to recover the promised reward. 2 In the words of Anson.g.
Communication is necessary whether the offer is specific or general. landlords. The offeror may communicate the offer by choosing any available means. Such forms contain large number of terms and conditions very often small in print absolving the dominant party of all liability. However.. catalogue. dry cleaners. 12 General offers are communicated to public through notice and advertise-ments. 11 The Act does not indicate the mode of communication. 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. loudspeaker announcements etc. printed forms of agreements known as ’standard form contracts’ are used. prospectus of a company. Therefore. insurance companies. A can’t sue B for remuneration since B’s consent can’t be presumed from his silence. Therefore the courts have evolved certain .g. 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.9 An invitation to offer is not an offer. However. In Lalman Shukla Vs. It is also difficult to draw up a separate agreement with each individual. 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. public utilities etc. An advertisement for tenders for sale of goods by auction. display of goods in shop windows. There can be no acceptance unless there is knowledge of the offer. E. are merely invitations to offer or offers. in modern times the buyer of an article is in an unfavourable position. Under Section 4 ‘the communication of a proposal is complete when it comes to the knowledge of the person to whom it is made‘. A works for B without the request or knowledge of B. 14 f) The terms and conditions of offer should also be communicated: An agreement is a two-sided bargain based on freedom of contract. an announcement about the stock of goods for sale. tailors. Gouri Dutt case it was held that knowledge of the offer is essential. However. price-lists. mere knowledge of a proposal does not amount to communication unless the offeree acquires it with express or implied intention of the offeror. The economically weaker party has to accept all such terms and conditions irrespective of whether he likes them or not. The Court too finds it difficult at times to protect the interest of the weaker party. 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. Freedom of contract becomes one-sided in the case of agreements with common carriers.
a sum of Rs. by a deed of gift. detriment. made over certain property to her daughter D. now refuses to pay her amount P. The acceptor can accept or reject them. 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. right. The term consideration is used in the sense of quid pro que. This “something may even be some benefit. They are just two identical or cross offers. 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. he is deemed to have accepted the offer. terms of money. While the offeror can prescribe mode of acceptance. the above amount on the plea that no . 100 per month. 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. He can’t say. suffered or undertaken by the other party. what is consideration? Give examples. interest or profit accruing to one party. b. loss or responsibility given. though there seems to be identity of mind. or some forbearance. A person who makes a promise to do or abstain from during something usually does so as a return of equivalent of some loss. with the specific directions that she should pay P. It is enough if the offeror has done all that can be considered necessary to give notice to the acceptor. or inconvenience that may have or may have been occasioned to the other party in respect of the promise. damage. Also a promise by one party may be consideration for the promise of other party. In simple terms consideration is what a promisor demands as the price for his promise. 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. No consideration.methods. who is the sister of the old lady. he can’t prescribe the form or time of refusal so as to fix a contract upon the acceptor. This ‘something” or consideration need not be in terms of money. no contract: A promise without consideration cannot create legal obligation. D. The same day D entered into an agreement with P to pay her the agreed amount. that if the offeree does not communicate before a given time. for example. One of the essential elements of a valid contract is that it must be supported by consideration. Ex: X an old lady.
P therefore.consideration had move from P to D. sues D. is the suit maintainable and can D he held liable to pay the amount? .
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