What was highlighted in the case law of Chinnayya regarding consideration?

In the case law of Chinnayya, the principle that consideration is valid even if it comes from a third party was emphasized. This means that a person can enforce a contract even if the consideration (something of value exchanged) does not come directly from them, but rather from someone else. This is an important concept in contract law as it broadens the scope of who can fulfill the consideration requirement in an agreement, allowing for more flexibility in contractual relationships.

In contract law, consideration is a critical element as it is what differentiates a contract from a gift. Valid consideration can come from any party involved, including third parties, as long as it is sufficient and has some value in the eyes of the law. This understanding allows parties to benefit from arrangements that may not solely rely on direct exchanges between the main parties to the contract.

The other options do not align with the principles established in Chinnayya. The assertion that consideration must come exclusively from the involved parties limits the scope of contractual agreements unfairly. Stating that consideration can never be from a stranger contradicts the ruling, as the case explicitly recognized the validity of consideration from third parties. Lastly, the requirement for documentation of consideration is not a strict legal necessity; while it may be good practice