Monday, 21 May 2018

Here Mr Shyam promise to sell his car. For his promise he will get rupees 5 lacs as return from Mr Raja. Here the money received by Shyam is the consideration for his promise.

In the same case, Mr. Raja also promised to pay money to Mr Shyam. for his promise getting car from Mr Shyam is the consideration.

Here, in this case, Mr Raja promised to Mr Shyam and Mr Shyam promised to Mr Raja which will be called as exchange of promises. which will be called as reciprocal promises.

As per the Contract Act, 1872 , reciprocal promises will form part of the consideration for each other.

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Here Mr Shyam promise to sell his car. For his promise he will get rupees 5 lacs as return from Mr Raja. Here the money received by Shyam...