PRIVITY OF CONSIDERATION

1. Which statement is correct regarding Privity of consideration:-
   a) Privity of consideration applies both in English law and Indian law.
   b) Privity of consideration does not apply both in English law and Indian law.
   c) Privity of consideration applies in Indian law but not in English law.
   d) Privity of consideration applies in English law but not in Indian law.
2. The doctrine of Privity of Consideration means:-
   a) Consideration must move from the promisee alone.
   b) Consideration may move from the promisee or any other person.
   c) Consideration may move from any person except the promisee.
   d) Consideration may move from any other person with prior permission of the state.
3. Which of the following is the leading case on Privity of consideration:-
   a) Balfour v. Balfour
   b) Chinnaya v. Ramaya
   c) Badri Prasad v. State of MP
   d) Carlill v. Carbolic Smoke Ball Co.
4. Which of the following sections of the Indian Contract Act defines “Consideration”-
   a) Section 2(j)
   b) Section 2(g)
   c) Section 2(b)
   d) Section 2(d)
5. ‘A’ gifted away her property to her daughter ‘B’ and directed ‘B’ to give an annuity of Rs.650 every year to A’s brother ‘P’. On the same day, B executed an agreement in favour of P promising to carry out A’s directions. B stopped paying an annuity of Rs.650 to P after some time and thereupon P sued B. Will P’s claim be sustained?
   a) Yes, because the Privity of consideration does not apply in India.
   b) No, because the Privity of consideration apply in India.
   c) Both (a) & (b)
   d) None of the above

Answer 1. (d) 2. (a) 3. (b) 4. (d) 5. (a)