a) Must consideration always be present to render a promise enforceable? b) Does the magnitude of consideration matter?...

50.1K

Verified Solution

Question

Accounting

a) Must consideration always bepresent to render a promise enforceable?
b) Does the magnitude of considerationmatter? Explain.
c) how have the common law courts insome cases permitted a debtor to enforce a creditor’s gratuitouspromise to reduce a debt?

Answer & Explanation Solved by verified expert

4.1 Ratings (680 Votes)

a Must consideration always be present to render a promise enforceable Consideration is an essential element of a valid contract A promise without consideration cannot be enforced by law except under certain circumstances Consideration is the necessary evidence by law of the intention of the parties to effect their legal relations Consideration broadly speaking is the price paid by the promisee for the obligation of the promisor The term consideration is used in the sense of something in return ie quid pro quo An agreement without consideration is a bare promise and exnudo pacto non aritio actio ie cannot be held to binding on the parties When no consideration is necessary The general rule is that contracts made wihtout consideration are void But Section 25 of the Contract Act lays down the undermentioned exceptions which make a promise without consideration valid and binding 1 Promise made on account of natural love and affection i When a contract is made on account of naturla love and affection between the parties ii The parties are standing in a near relation to each other and iii See Answer

Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:

Unlimited Question Access with detailed Answers
Zin AI - 3 Million Words
10 Dall-E 3 Images
20 Plot Generations
Conversation with Dialogue Memory
No Ads, Ever!
Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!

Become a Member