Court case(1882) ILR 4 Mad 137

Chinnaya v. Ramayya

(1882) ILR 4 Mad 137 · Madras High Court · 1882

PrincipleConsideration may move from a third party, not only from the promisee.

Facts

An old lady gifted her property to her daughter Ramayya by a registered deed, directing her to pay an annuity to the lady's sister, Chinnaya. On the same day Ramayya executed a writing in favour of Chinnaya promising to pay the annuity. She later refused, saying Chinnaya had given no consideration.

Held

The Madras High Court held that the consideration for Ramayya's promise was the gift of property by her mother, and section 2(d) allows consideration to move from the promisee 'or any other person'. The promise was therefore supported by consideration and Chinnaya could enforce it.

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