Monday, October 08, 2007

Contract Act_Practical Problems_8

X, an old lady, by a deed of gift made over certain property to her daughter D, with the specific directions that she should pay P, who is the sister of the old lady, a sum of Rs. 100 per month. The same day D entered into an agreement with P to pay her the agreed amount. D now refuses to pay her aunt P, the above amount on the plea that no consideration had moved from P to D. P, therefore, sues D. Is the suit maintainable and can D be held liable to pay the amount? Decide.

Yes-D can be held liable to pay the amount to P. Consideration may move from a stranger [Section 2(d) of the Indian ContractAct]. The facts of the given problem are based on the case of Chinnaya v. Ramaya in which a similar decision was given.

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