Ram by a deed of gift made over certain property to her daughter Mira, directing her to pay an annuity to Ram's brother Raj, as had been done by Ram himself before he gifted his property to Mira. On the same day, Mira ex

CS Executive · Jurisprudence, Interpretation and General Laws · PYQS · December 2024
Ram by a deed of gift made over certain property to her daughter Mira, directing her to pay an annuity to Ram's brother Raj, as had been done by Ram himself before he gifted his property to Mira. On the same day, Mira executed in writing in favour of the donor's brother agreeing to pay the annuity. Six months later Mira stops the payment and Raj files a civil suit. Mira claimed that because no consideration has moved from Raj to her, there is no binding contract between them. Discuss.

Answer & Explanation:

According to Section 2(d) of the Indian Contract Act, 1872, consideration may move from the promisee or any other person, meaning that a third party can maintain a suit. The leading case on this judgment is Chinnaya v. Ramaya (1882) 4 Mad. 137 , where the court held that consideration moving from a third party is sufficient to enforce a contract. In the given situation: Ram executed a deed of gift, transferring property to his daughter Mira. Ram instructed Mira to pay an annuity to his brother Raj. Mira signed a written agreement in favor of Raj, committing to pay the annuity. Mira later refused to pay, claiming no consideration moved from Raj to her. Conclusion: Raj has the right to sue Mira, even though she did not receive any consideration directly from him. The consideration provided by Ram when he transferred the land to Mira is sufficient. Mira's promise to pay Raj forms part of the consideration for the property she received.

Topics: Indian Contract Act, 1872

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