MGT611 Assignment 1 Solution Spring 2018

Business and Labor Law (MGT611)
Due Date: 10 May 2018 Total Marks: 10
Topic to be tested: Consideration
Learning objective:
Through this assignment, the students are expected to be able to analyze definition of “consideration” with reference to the Contract Act 1872.
Tasks – A
“Consideration” is defined as a promise to do something, forbearance of something or
something in return. Considering this definition, answer the following questions: (6 Marks)
a) Will “anything” be considered a valid consideration by law, irrespective of its value or materiality?
b) Is existence of mutual promise necessary to accept that there is a consideration? What if a father gives his car to his son without taking any money?
c) Provide an illustration where forbearance may be deemed a good consideration.

Tasks – B
Explain the below mentioned concepts related to the “scope of consideration” with the help of
suitable examples: (4 Marks)
a) Consideration must be conducive to contract
b) Consideration at the desire of third party
c) Concept of inadequate consideration
d) Past consideration