INDIAN CONTRACT ACT UNILATERAL CONTRACT

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This discussion delves into unilateral contracts under the Indian Contract Act, specifically questioning whether the promisee receives consideration. Using an example of a lost dog reward, it examines how 'A' performing the act (finding the dog) constitutes consideration for 'M's promise to pay. While Section 2(d) defines consideration as something done or abstained from doing at the promisor's desire, the debate clarifies that the performance itself serves as consideration for the promise, and the promise is consideration for the performance in such agreements.

SHIVAM JHUNJHUNWALA

SHIVAM JHUNJHUNWALA (Querist)

19 April 2021 IN INDIAN CONTRACT ACT, DOES PROMISEE GETS CONSIDERATION IN UNILATERASL CONTRACT...FO EG. "M" ADVERTISES THAT WHOESEVER FINDS HIS LOST DOG WILL BE REWARDED 5000. "A" FINDS DOG AND RETURN IT TO "M". HERE CONTRACT IS FORMED AS SOON AS "A" FINDS AND RETURN THE LOST DOG AND HENCE IT IS A UNILATERAL CONTRACT. SO AS WE KNOW ACCORDING TO DEFINATI0ON OD CONSIDERATION AS PER 2(D) CONSIDERATION IS FOR PROMISE.. HERE "M" OFFERED AND "A" ACCPETED BY GIVING PEROFORMANCE. SO "M" HAS PROMSIED TO GIVE 5000 TO WHICH HE RECIEVES CONSIDERATION AS HIS LOST DOG. BUT "A" DOESNT MAKES ANY PROMISE BCOZ HE HAS PERFORMED HIS ACT.. SO "A" GETTING 5000 IS OR IS NOT CONSIDERATION......IN SHORT DOES PROMISEE IN AN UNILATERAL CONTRACT RECIEVES CONSIDERATION

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)

19 April 2021 "A" DOESNT MAKES ANY PROMISE BCOZ HE HAS PERFORMED HIS ACT.. SO "A" GETTING 5000.

SHIVAM JHUNJHUNWALA

SHIVAM JHUNJHUNWALA (Querist)

19 April 2021 So sir what A is getting is not a consideration...is that what u mean to say...

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)

19 April 2021 No, it's a consideration for the services rendered.

SHIVAM JHUNJHUNWALA

SHIVAM JHUNJHUNWALA (Querist)

19 April 2021 But sir as per section 2(d) consideration is for a promise but here A has not given any promise rather rendered services so how can he get consideration

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)

19 April 2021 CONDIDERATION IS FOR SERVICE RENDERED AND NOT FOR PROMISE.

SHIVAM JHUNJHUNWALA

SHIVAM JHUNJHUNWALA (Querist)

19 April 2021 but sir aaccording to section 2(d) conisderation is "when at the desire of the promisor, promisee or any other person has done or abstained from doing or does or abstains from doing or promises to do or to abstain from doing something, such act or abstinence, or promise is called a consideration for the promise."

so here M is promisor and A is promisee, so what M is getting is only consideration,,, what A is getting is not consideration as what is done at desire of promisor is consideration and A is promisee and not promisor. Morever, it is clearly mentioned that consideration is for promise..

so plz could you explain this???

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)

20 April 2021 M is only promising to pay and A does it and receive the consideration.
It's simple.

SHIVAM JHUNJHUNWALA

SHIVAM JHUNJHUNWALA (Querist)

20 April 2021 So sir if there is only one promise there will be only one consideration

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)

20 April 2021 Onely one promise and one performance.

SHIVAM JHUNJHUNWALA

SHIVAM JHUNJHUNWALA (Querist)

20 April 2021 BUT SIR DEFINATION OF CONSIDERATION DOES'T TALKS ABOUT CONSIDERATION FOR A PROMISE.. RATHER IT TALKS ABOUT CONSIDERATION FOR A PROMISE AND HERE A IS PERFORMING RAHTER THAN MAKING PROMISES.. IF YOU KNOW SOMEWHERE IT IS WRITTEN THAT CONSIDERATION IS ALSO FOR PERFORMANCE. PLZ GIVE REFRENCES

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)

21 April 2021 In a unilateral contract, an agreement by which one party makes a promise in exchange for the other's performance, the performance is consideration for the promise, while the promise is consideration for the performance.

https://law.jrank.org/pages/5587/Consideration.html

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