daVe.. (Student) (1431 Points)
06 December 2008Father promised to pay his son a sum of Rs.100,000 if the son passed his CA examination in the first attempt.
The son passed the examination in the first attempt but father failed to pay the promised amount.
Son filed a suit for recovery of the amount.
State, along with reasons, whether son can recover the amount under the Indian Contract Act, 1872.
Ruchika Gupta
(Chartered Accountant)
(247 Points)
Replied 06 December 2008
No, because while entering into the contract there was no intent to enter into a legal relationship. (This qs appeared in PE-II law exam in May 2005, you can check suggested Qs&Ans for the same).
shailesh agarwal
(professional accountant)
(7642 Points)
Replied 07 December 2008
i think he prefers to check us before his study
praveen
(Chartered Accountant)
(6971 Points)
Replied 07 December 2008
as it is all personal and no legal relationship he cannot file a suit against his father.
CA. Amit Daga
(Finance Controller CA. CS. CFA. CIFRS. M.COM. )
(9017 Points)
Replied 07 December 2008
Firstly i would like to say very very good question.. hahahahha
CA. Amit Daga
(Finance Controller CA. CS. CFA. CIFRS. M.COM. )
(9017 Points)
Replied 07 December 2008
As per the indian contract act,1872.
Consideration is required. So, as per law there is no benefit to the second party.
If son passed his in first attempt . father will not get any beneift
So he cant suit against him
As well as its a social contract and social contract is not covered by indian contract act,1872
daVe..
(Student)
(1431 Points)
Replied 07 December 2008
| Originally posted by :Ruchika Gupta | ||
| " | No, because while entering into the contract there was no intent to enter into a legal relationship. (This qs appeared in PE-II law exam in May 2005, you can check suggested Qs&Ans for the same). | " |
Ruchika Gupta was right!
i checked out the answers. It had the same solution. Thanx
daVe..
(Student)
(1431 Points)
Replied 07 December 2008
Ashish M
(Chartered Accountant)
(2731 Points)
Replied 08 December 2008
since no intention is there to creat legal enforceability, hence, it is not a contract a the very first place, no question of filing suit.........
B.Nagesh
(MBA- CS Execuitve)
(151 Points)
Replied 09 December 2008
It's not enforceable by law, it's mutual understanding between father and son and also natural love and affection, it's void from the begining ''ABINITIO",
Prabeer
(B. COM (H) CA & CS Final)
(5484 Points)
Replied 09 December 2008
As per the indian contract act,1872.
Consideration is required. So, as per law there is no benefit to the FATHER.
If son passed his in first attempt . father will not get any beneift
So he can't suE his father.
As well as its a social contract and social contract is not covered by indian contract act,1872.
| Originally posted by :Dave | ||
| " | Father promised to pay his son a sum of Rs.100,000 if the son passed his CA examination in the first attempt. The son passed the examination in the first attempt but father failed to pay the promised amount. Son filed a suit for recovery of the amount. State, along with reasons, whether son can recover the amount under the Indian Contract Act, 1872. |
" |
sairam
(student)
(118 Points)
Replied 09 March 2010
since there is no intention to create legal relation ship it is not enforceable
CAclubindia
