Consderation Related Solution of Assignment no 1 MGT 611 part 2

I m pasting my solved assignment for all my fellows.Plz 1st read it carefull and if you consider it right then you can follow it other wise not but according to me its fine but still I can not guarantee you about the getting maximum marks.

Tasks - B

Explain the below mentioned concepts related to the “scope of consideration” with the help of suitable examples:  (4 Marks)

 

a ) Consideration must be conducive to contract

 

Answer: Opening of a bank account leads to a contract between the customer and the bank. If the bank pays a cheque by its own mistake of an amount more than the credit balance in customers account, the payment shall be treated without consideration as terms of contract did nt stipulate payment of any cheque of any amount more than the balance available in the account.

 

 

b) Consideration at the desire of third party
 

Answer: It’s an example of good consideration.Under law third party can perform any contract under third party but in this case he could nt file a suit  under the contract.

 

For Example: A makes a contract with B for sales of mobiles at the price of 100,000 rupees and there is a third party C who is offering both A and B his services to safely transport their mobiles to their destination.If A or B is unable to make timely payment to C then C as a third party do nt have any right to file a suit against them.

 

c) Concept of inadequate consideration
 

Answer: Inadequate consideration remains the consideration for all legal purposes. : Acceptance of a liability by the debtor of an amount more than the amount advanced by the creditor shall be treated as a good conseideration.

 

Past consideration
 

Answer: Past consideration is a legal consideration. Services rendered in past by an employee against a promise to pay him bonus etc in future is a good consideration in the eye of law.

 

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