Stranger to Consideration

Under the Indian Contract Act 1872 consideration for a contract may move from the promisee or any other person i.e. a stranger to the consideration can also enforce the contract. But under the English Law the consideration for the contract must move from the promisee and promisee only, therefore a stranger to consideration cannot enforce it.

    

   So, in India the consideration may move from stranger. This law was established in the case of CHINAYYA Vs. RAMAYYA. 

CHINAYYA Vs. RAMAYYA. 

An old lady Laxhmi Rani gifted her property to her own daughter Ramayya, with the directions to pay a certain sum of money annually to chinayya, her maternal uncle. On the same day Ramayya refused to honour the agreement on the ground that there is no consideration. Chinayya sued for the recovery of the annuity. It was held that there was sufficent consideration i.e. the property given to her by the sister of Chinayya.