Question

Apply the legal principles to the facts given below and select the most appropriate answer.

Legal Principles:
1. A contract comes into being from the acceptance of an offer, When the person to whom the offer is made signifies his assent thereto, the proposal is said to be accepted and the parties are at consensus and idem regarding the terms of the agreement.
2. Consideration is something that moves from the promise to the promisor, at the implied or express request of the latter, in return for his promise. The item that moves can be a right. interest, profit, loss, responsibility given or suffered, forbearance, or a benefit which is of some value in the eyes of law.
3. Contractual rights and liabilities are exclusive to the parties to contract.
4. There are few exceptions to the doctrine of privity of contracts like agency, trust, assignment, and third party beneficiary.
5. A quasi-contract is a contract that is created by the court when no such official contract exists between the parties to prevent a party from being unjustly enriched, or from benefitting from the situation when he/she does not deserve to do so.

Facts: Nandini, by deed of gift, made over the certain landed property to Reena, her daughter. By the terms of the deed, which was registered, it was stipulated that an annuity of ₹ 3,000 should be paid every year to Subhashini, sister of Nandini. Reena executed in Subhashini’s favour an agreement promising to give effect to stipulation. The annuity was, however, not paid and Subhashini sued to recover it. Reena is defending herself by claiming that there is no valid contract with Subhashini. Which of the following can be ground/s for the court’s decision? 

I. A promise is enforceable if there is some consideration for it and it is quite immaterial whether it moves from the promise or any other person.
II Only a person who is a party to a contract may demand the execution of that contract from other parties. But if there is a third-party beneficiary to the contract then it is enforced to the extent of his\her benefit.
III. The agreement is valid as both Reena and Subhashini agreed to it on the same thing in the same sense.
IV. There is no privity of contract as Subhashini has furnished no consideration. Reena had promised to Subhashini but consideration was furnished by Nandini.

पर्याय

• I, II

• III, IV

• I only

• II only

Answer 1

I, II

Explanation:

In this case, there is a contract between Nandini and Reena because there is an acceptance of the offer by Reena from Nandini. There is a consideration in the promise made in this case and therefore this promise is enforceable. The court will look into this aspect to decide that Reena is liable to pay Suhasini as per the terms of the contract.