Page 10 - 01. Indian Contract Act, 1872

Q: A husband, by a registered agreement promised to pay his earnings to his

wife. Is the agreement valid?

A: Yes. The agreement, through without consideration , is valid (natural love and

affection)

Q: A husband by a registered document, after referring to quarries and

disagreement between himself and his wife, promised to pay his wife a sum of

money for her eminence and separate residence.

A: No, Promise was unenforceable as natural love and affection was missing .

Gratious promise

 A gratious contract is a contract without any consideration.
 A gratious promise cannot be enforced.

 However, where a promisor makes a promise for which some other person will

be benefited, then the promisor will be liable to the promisee .
 E.g:- If X gives a loan to Y and z gives the guarantee to X on behalf of Y, then Z

will be liable to X if Y does not repay the loan even though Z was not benefited
by giving the guarantee.

Doctrine of Privity of Contract:

 It means that only those persons, who are parties to a contract, can sue and be
sued upon the contract.

 It refers to the relationship between parties who have entered in to the contracts.

 The third party cannot sue upon it, even though the contact may be for his
benefit.

 Thus, “a stranger to the contract” cannot bring a valid suit under the contract.

 It is different from “ stranger to consideration”.
 Stranger to contract has a right to sue in the following cases

(i) Beneficiary of Trust or charge can enforce it even if he is not a party in
trust Deed.

(ii) Married settlement, partition and other family arrangements, and other

such agreements when they are reduced to writing.

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