Home › CA Foundation › businesslaw › Consideration › In Kedarnath v. Gorie Mohammad, a promise to sub…
In Kedarnath v. Gorie Mohammad, a promise to subscribe to a charitable purpose was held enforceable because:
AThe amount promised was adequate
BThe promisee had incurred liability on the faith of the promise
CCharitable promises are always binding
DThe promise was registered
Answer & Solution
Correct answer: B. The promisee had incurred liability on the faith of the promise
Where the promisee undertakes a liability on the strength of the promised subscription, the promise becomes enforceable to the extent of that liability, even though it began as a gratuitous promise.
Related questions
Under Section 185, what consideration is necessary to create an agency?A written, signed promise to pay a debt barred by the law of limitation is enforceable witFor an agreement made without consideration on the ground of natural love and affection toWhich of the following is NOT an exception to the rule 'no consideration, no contract'?As a general rule under Section 25, an agreement made without consideration is:A promise to pay money to a person for doing something he is already legally bound to do iAccording to Section 2(d), consideration may be:Past consideration is valid under Indian law provided that the past act was done: