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1. A stranger to the contract is an entity not party to a contract. It can also specifically refer to an entity seeking to deprive one of the parties the benefit of the contract, such as in the case of the business torts of tortious inference with contract or tortious interference with an advantageous business relation.
2. The unrelated concept of consideration is an element necessary for contract formation, in addition to mutual assent or offer and acceptance. It is defined as a bargained-for exchange; that is, an exchange of value between the parties, legally justifying the benefit of the contract accruing to the party. It can also take the form of a detriment incurred by one of the parties. There are alternative contract-law theories that can substitute for consideration under appropriate circumstances.
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∙ 12y ago
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A strainger to consideration can sue but a stranger to contract cannot sue?
Stranger to consideration can sue but not stranger to contract.According to sec 2(d) of Indian contract act,1872. Consideration definition says that "when at the desire of the promisor, promisee or any other person- has done or abstained from doing ,does or abstains from doing, promises to do or abstains from doing something".According to this definition law only considers that in a contract consideration should be there,and it is immaterial who has supplied consideration. that is ,a stranger can also give consideration. so when promisee does not give consideration and if it is supplied by stranger, than promisee becomes stranger to consideration. so promisee though he does not give consideration he can sue promisor for enforcing the contract i.e enforcing promise given by promisor, because consideration is there and it is supplied by some third party.According to Privity of contract it says stranger to contract cannot sue: because only parties to the contract can proceed against one another and not a third person.That is a third person cannot file a suit on a party to the contract for enforcement of promise.Example: Dunlop Pnuematic vs Selfridge co.,case facts once refer.Ex: suppose if x sells his property to y and in turn y promises x that he would pay off the debt of x which is due to z. In such a case, if y did not pay the debt money to z, then z cannot file suit on y because z is stranger to contract.So stranger to consideration can sue but not a stranger to contract.
What does it mean when a stranger to contract cannot sue?
it is the major consistence to anybody else
Will a contract always be valid and binding when its contains consideration?
Just because a contract contains consideration does not mean it is legal or binding. There are other requirements that must be met.
Privity of contract and privity of consideration?
Privity of consideration: In England consideration must move from the promisee. If it is furnished by any other person ,the promisee becomes a stranger to the consideration and,therefore,cannot enforce the promise promisee seeking to enforce an agreement must show that he himself furnished the consideration for the promise give by the other party.The principle is known as the doctrine of privity of consideration.This principle is not applicable in INDIA.Privity of contract : A contract cannot confer any right on one who is not a party to the contract even though the very object of the contract may have been to benefit him.Only a person who is party to a contract can sue on it.This principle is applicable in INDIA.
Why a past consideration is not a good consideration?
Do you mean consideration for contract formation? To have a bargain, you have to be willing to give something up. For example, if we had a contract for the purchase of your car for $5000, you would give up your car, and I would give up $5000. That's consideration. If the consideration is in the past (e.g. you already gave up your car), that's not going to create a binding contract.
What is a consideration of a contract?
Consideration is the Promise or Performance that flows between the parties to a contract. It is also called legal detriment.
Can an option contract be created without consideration?
No. An option contract requires consideration for the option. Absent consideration for the option, the offer may be withdrawn at any time.
What are the advantages and disadvantages of past consideration?
The advantages of consideration in a valid contract
Where there is no consideration there is no contract-comment?
In business
The first step in negotiating a contract is?
consideration
What does consideration mean in contract law?
A simplistic definition of 'consideration' is: something of value given by one party, in return for the performing of a contract, or for the promise to perform a contract, by the other party. (The full definition and analysis could run for several pages.)
What does it mean by consideration must move from promisee?
In contract law, consideration is the benefit received by each party in a contract. It must move from the promisee to the promisor, meaning that the promisee must provide something of value in exchange for the promise made by the promisor for the contract to be legally binding. This ensures that both parties are giving and receiving something in the agreement.
