Principle: Past consideration is valid consideration in India (unlike English common law) if it was rendered at the desire of the promisor.
Facts: Arjun's car breaks down on an isolated highway. At Arjun's request, mechanic Karan spends 3 hours fixing it. Arjun then promises to pay Karan ₹2,000 next morning. Later Arjun refuses, claiming his promise was made after the work was already finished. Is Arjun's promise enforceable?
Answer and explanation
Correct answer: A. Yes, services rendered at the promisor's desire are valid consideration (Section 2(d))
- Step 1: Under Section 2 clause d of the Indian Contract Act 1872, past service constitutes valid consideration if the act was performed at the desire of the promisor prior to making the promise.
- Step 2: Karan repaired the broken vehicle at the explicit request of Arjun. Because this assistance was rendered at Arjun's prior desire, it satisfies the statutory requirements of consideration under Indian law, making the subsequent promise to pay ₹2,000 binding.
- Step 3: Arjun's promise is legally enforceable.
Answer
Yes, because the service was rendered at the prior desire of the promisor Arjun, making it valid consideration under Section 2(d) of the Indian Contract Act.
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