BACHELOR OF BUSINESS ADMINISTRATION

Detailed explanation-1: -Consideration may move from the promisee or any other person. Under Indian law, consideration may be from the promisee of any other person i.e., even a stranger. This means that as long as there is consideration for the promisee, it is immaterial who has furnished it.

Detailed explanation-2: -If you look at the definition of consideration according to section 2 (d) of the Indian Contract Act. 1872, it explicitly states the phrase ‘promisee or any other person…’ This essentially means that in India, consideration may move from the promise to any other person.

Detailed explanation-3: -It is established that the consideration can move from a third party but it cannot sue for its own agreement.

Detailed explanation-4: -Consideration is the main element of a contract. Without consideration by both parties, a contract cannot be enforceable. For instance, if a person used the money to purchase an apple, the apple is the merchant’s consideration, and the money is the person’s consideration.