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Question

Identify which of the following statements is/are true?

A. There can be a stranger to a contract and consideration.

B. There can be a stranger to a contract.

C. There can be a stranger to consideration.

D. There cannot be a stranger to any contract.

The correct answer is

C is true

Understanding Strangers in Contract Law

In contract law, there are important principles regarding who can be involved in and benefit from a contract. Two key concepts are 'privity of contract' and 'consideration'.

  • Privity of Contract: This rule states that generally, only parties to a contract can sue or be sued under it. A person who is not a party to the contract is called a 'stranger to the contract'. The rule is that a stranger to the contract cannot enforce the contract.
  • Consideration: Consideration is something of value that is exchanged between the parties. The rule related to consideration is that consideration must move from the promisee. However, in some legal systems, like in Indian Contract Law, consideration can move from the promisee or any other person on behalf of the promisee. A person who provides consideration but is not the promisee is sometimes referred to as a 'stranger to consideration'.

Let's examine each statement:

  • Statement A: There can be a stranger to a contract and consideration.

    This statement is true. If someone is not a party to the contract, they are both a stranger to the contract and they are not providing or receiving consideration under that contract.

  • Statement B: There can be a stranger to a contract.

    This statement is true due to the principle of privity of contract. Anyone who is not a party to a contract is a stranger to it.

  • Statement C: There can be a stranger to consideration.

    This statement refers to a situation where a person who is a party to the contract (the promisee) receives consideration that is provided by a third party (someone who is not the promisee). In legal systems where consideration can move from a third party, this is possible. Therefore, there can be a stranger to consideration.

  • Statement D: There cannot be a stranger to any contract.

    This statement is false. As explained by the principle of privity, anyone who is not a party to a contract is a stranger to it, and such people certainly exist.

Comparing the statements, Statement C highlights a specific legal principle in contract law where consideration can originate from someone other than the party receiving the promise. While statements A and B are also generally true, statement C points to a nuanced aspect often discussed in contrast with privity of contract. Based on common interpretations in contract law studies where the distinction between 'stranger to contract' and 'stranger to consideration' is emphasized, Statement C is often presented as a distinct possibility.

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Important Questions from Miscellaneous

  1. A stone is thrown horizontally from the top of a 20 m high building with a speed of 12 m/s. It hits the ground at a distance R from the building. Taking g = 10 m/s2 and neglecting air resistance will give :

  2. A sphere of volume V is made of a material with lower density than water. While on Earth, it floats on water with its volume f1V (f1 < 1) submerged. On the other hand, on a spaceship accelerating with acceleration a < g (g is the acceleration due to gravity on Earth) in outer space, its submerged volume in water is f2V. Then:

  3. A railway wagon (open at the top) of mass M1 is moving with speed v1 along a straight track. As a result of rain, after some time it gets partially filled with water so that the mass of the wagon becomes M2 and speed becomes v2. Taking the rain to be falling vertically and the water stationery inside the wagon, the relation between the two speeds v1 and v2 is :

  4. Consider the following statements:

    1. Distance between the longitudes becomes zero on North Pole and South Pole.

    2. Distance between the longitudes is maximum on the Equator.

    3. Number of longitudes is more than number of latitudes.

    Which of the statements given above is/are correct?

  5. One block of 2⋅0 kg mass is placed on top of another block of 3⋅0 kg mass. The coefficient of static friction between the two blocks is 0⋅2. The bottom block is pulled with a horizontal force F such that both the blocks move together without slipping. Taking acceleration due to gravity as 10 m/s2, the maximum value of the frictional force is :

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