Practicing Success
Practicing Success
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| Consider the passage given below and answer the question. An agreement not enforceable by law is said to be void. To consummate a contract there must be mutuality as well as a meeting of the minds of parties. Mutuality means equality of rights between the parties. Either party should have equal right to enforce the contract. For instance, where one of the parties to a contract is minor, there is no mutuality. Further, in a contract there is a consensus ad idem which means ‘meeting of minds’. According to Salmond, ‘A contract is an agreement creating and defining obligations between the parties’. |
| Which of the following cases is related to 'consideration' of contract? |
Carlill v. Carbolic Smoke Ball Co.
Durga Prasad V. Baldeo
Balfour v. Balfour
Krell v. Henry
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| Durga Prasad V. Baldeo |
| In an Indian case - Durga Prasad V. Baldeo the plaintiff constructed some shops at the request of the District Collector in a town. The constructed shops were given for rent for doing business to the defendant. The defendant, apart from the rent, promised to give 5% commission to the plaintiff on all articles sold through the shop in consideration of the huge amount spent by the plaintiff in the construction of the building. The defendant failed to pay the commission and the plaintiff initiated action to recover the commission. The Court rejected the action of the plaintiff on the ground that the construction of shop was done at the desire of the District Collector and not on the desire of the defendant and hence there was no consideration to give commission. Accordingly, there is no valid contract to pay commission to the plaintiff. |
