BACHELOR OF BUSINESS ADMINISTRATION

Detailed explanation-1: -A donative promise is simply a promise to give a gift. For example, Preston promises to give Henry a car. The general rule is that a simple donative promise is unenforceable because there is no consideration.

Detailed explanation-2: -Consideration is the value that induces the parties to enter into the contract. The existence of consideration distinguishes a contract from a gift. A gift is a voluntary and gratuitous transfer of property from one person to another, without something of value promised in return.

Detailed explanation-3: -Gifts. The rule of no consideration no contract does not apply to gifts. Explanation (1) to Section 25 of the Indian Contract Act, 1872 states that the rule of an agreement without consideration being void does not apply to gifts made by a donor and accepted by a donee.

Detailed explanation-4: -A contract where the parties exchange a promise for a promise is known as a Bilateral Contract, whereas a contract where one party gives a promise and the other party performs an act is known as a Unilateral Contract. These legally enforceable promises may be in writing or oral.