Welcome to your Ch 7: Consideration (1 to 5)
1. Examine the following statements in the light of section 2(31) which defines the term consideration-
i. Inducement by supplier to make the payment is the consideration.
ii. Consideration can be in the form of money or in the form of goods or services.
iii. Subsidy given by Central Govt. or State Govt. is a consideration.
iv. Security deposit is a consideration.
2.Examine the following statements in the light of section 2(31) which defines the term consideration.
i. A club offers a car to a football player to make him join their club is a consideration.
ii. Restaurant owner offers free meal to bus drivers so that he can bring potential customers to his restaurant is a consideration.
3. Examine the following statements in the light of section 2(31) which defines the term consideration-
i. Mr. A supplies goods to Mr. B but consideration is paid by Mr. C. This is not a consideration since
payment is not made by recipient of goods which is Mr. B.
ii. Advance payment for the supply of goods or services is a consideration.
4. Examine the following statements in the light of section 2(31) which defines the term consideration-
i. Adjustable deposit is a consideration.
ii. Non adjustable deposit is not a consideration.
5. Examine the following statements in the light of section 2(31) which defines the term consideration-
i. Passerby drops coins on bowl of an artist who is performing on street is a consideration.
ii. Accident compensation received is not a consideration.
