Question:

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

Approach Solution - 1

The Correct Option is (A):It is valid only in Indian Law and not in English Law
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Approach Solution -2

This question compares how Indian and English contract law treat consideration that was given before the promise was made, that is, past consideration.

  1. Valid only in Indian Law and not in English Law: Section 2(d) of the Indian Contract Act defines consideration to include something the promisee has done or abstained from doing, using the past tense, this expressly recognises past acts as valid consideration. English common law, by contrast, generally treats consideration as something that must move at the time of the promise or be given for a fresh promise, and does not recognise a wholly past act as good consideration for a later promise, except in narrow, specific exceptions. This difference matches the option exactly.
  2. Valid only in English Law and not in Indian Law: this reverses the actual position, it is Indian law, through the express wording of Section 2(d), that accepts past consideration, while English law is the stricter one on this point.
  3. It is valid both in Indian Law and English Law: this overstates the position on the English side, since English law's general rule is that past consideration is no consideration, so the two systems do not actually align here.
  4. It is neither valid in English Law nor in Indian Law: this is wrong for the Indian side, since the definition in Section 2(d) plainly allows for a promise founded on a past act.

Because Section 2(d) uses has done or abstained from doing to define consideration, past consideration is good consideration in India, a position English common law does not generally share.

So, the correct answer is It is valid only in Indian Law and not in English Law.

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