question archive State whether Abu is required by consideration to fulfil his promises in the following situations and explain the reasons for your answer with relevant authorities

State whether Abu is required by consideration to fulfil his promises in the following situations and explain the reasons for your answer with relevant authorities

Subject:LawPrice:3.86 Bought7

State whether Abu is required by consideration to fulfil his promises in the following situations and explain the reasons for your answer with relevant authorities.

a)              Abu promises to sell an expensive car to Rafiq for RM1,000. 

b)              Abu returns home and finds that Jack had cleaned his house and he promises to pay RM100 for his work.

c)              Abu promises to release Ali from debt of RM2,500 if Ali pays him RM1,200 in November 2020.

d)              Abu promised to pay his brother RM300 per month until his brother start working, so that Abu's father will transfer his car to Abu name. 

pur-new-sol

Purchase A New Answer

Custom new solution created by our subject matter experts

GET A QUOTE

Answer Preview

Consideration- When something is given in return for something else, whether it is an action, a promise to act or a promise to abstain from doing something.

 

Under section 2(d) of the Contracts Act 1950:

When one party promises another to do any act or abstain from doing something, such an act, abstinence or the promise is called a

consideration of the promise.

 The price that one party pays to buy the promise or act of the other is the Consideration. 

Step-by-step explanation

a) Abu promises to sell an expensive car to Rafiq for RM1,000. 

No. Abu is not required to fulfil the promise to Rafiq. Abu has promised to sell the car for RM1,000, but Rafiq has not agreed or expressed intent to buy the car. If Rafiq had agreed to buy the car, then Abu would have been required to fulfil, but Rafiq has not agreed to buy the car.

 

b) Abu returns home and finds that Jack had cleaned his house and he promises to pay RM100 for his work. This is a past consideration where there is a promise to pay for an act that has already been performed. Abu promises to pay for the cleaning of the house by Jack which Jack has already performed.

Yes, Abu is required to fulfil his promise. The promise to pay RM100 for the work done by Jack is a lawful consideration.

 

c) Abu promises to release Ali from a debt of RM2,500 if Ali pays him RM1,200 in November 2020.

This is an executory consideration where there is a promise to pay for an act if it is fulfilled in future. If Ali pays, Abu releases him from the debt.

Yes, Abu is required to fulfil his promise. The promise to release Ali from debt if he pays him R1,200 in November 2020 is a lawful consideration. Each party of the parties have promised to fulfil a promise for a consideration. 

 

d) Abu promised to pay his brother RM300 per month until his brother starts working so that Abu's father will transfer his car to Abu name. This is an executed consideration where the promisor asks for something in exchange for his promise.

Yes, Abu is required to fulfil his promise. The promise of each party is the consideration for the promise of the other party. In this case, there is a promise from Abu to pay his brother RM300 monthly until the brother starts working, there is also a promise by Abu's father to transfer his car to Abu's name.

 

In conclusion, for a consideration to be valid, it must be legal, have some value, clearly made and be possible to perform which applies in all the above cases except for ''a'' where Rafiq's position is not clear.