Alex promises to donate ₹10,000 to a local animal shelter for their new facility. However, when the shelter requests the donation, Alex refuses to pay. Can the management of animal shelter take legal action against Alex

The fundamental principle is that consideration is essential in every contract. A gratuitous promise, such as a subscription for charity, is generally not enforceable. In the given situation: Alex promises to donate ₹10,000 to an animal shelter. Alex later refuses to pay. Scenario 1: No work initiated by the shelter. The management of the animal shelter would not be able to take legal action to enforce Alex's promise to donate ₹10,000, as the promise is gratuitous and without consideration. A mere promise is not enforceable at law. Scenario 2: Work initiated by the shelter based on the promise. If, on the basis of the promise made by Alex to donate ₹10,000, the management of the shelter home had initiated some work, Alex would be liable. This is provided that Alex knew the purpose of the donation and also knew that an obligation might be incurred on the faith of the subscription. This is because the management undertook liability by initiating some work which they would not have done but for the promise of the promisor. This constitutes a form of consideration (detriment to the promisee). However, if Alex was unaware that an obligation might be incurred in reliance on his promise, he would not be held liable under the Indian Contract Act.