Question:medium

Is past consideration for a promise valid to create a contract?

Updated On: Jul 13, 2026
  • It is valid only in Indian Law and not in English Law
  • It is valid only in English Law and not in Indian Law
  • It is valid both in Indian Law and English Law
  • It is neither valid in English Law nor in Indian Law
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The Correct Option is A

Solution and Explanation

A useful way into this question is to go straight to the wording of Section 2(d), since the words the drafters chose are what create the difference between the two legal systems here.

  1. Valid only in Indian Law and not in English Law: Section 2(d) covers consideration given at the desire of the promisor when the promisee does, abstains, or has done or abstained. The phrase has done is past tense, so an act completed before the promise still counts as consideration under Indian law. English law does not extend the same courtesy, a promise made in return for something already finished, with nothing more asked in exchange, generally fails for want of consideration there.
  2. Valid only in English Law and not in Indian Law: this gets the comparison backwards, since it is the codified Indian provision, not English common law, that expressly makes room for a past act.
  3. It is valid both in Indian Law and English Law: English law's default rule works against this, a past act is treated as no consideration at all under the general common law position, so calling it valid in both systems is not accurate.
  4. It is neither valid in English Law nor in Indian Law: this cannot be right for India, given that Section 2(d)'s own wording is drafted broadly enough to include a completed past act.

The statutory phrase has done or abstained from doing is what carves out the Indian exception that English common law does not generally allow.

The correct answer is It is valid only in Indian Law and not in English Law.

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