Question

Arjun, at the request of the local community leader, builds a playground for the children in his neighborhood, spending a considerable amount of his own money. Later, Ravi, a local snack vendor, sets up a stall near the playground to sell snacks to children and promises to give Arjun 10% of his profits from all sales as a token of appreciation for building the playground. However, Ravi fails to pay Arjun the promised percentage, and Arjun decides to take legal action to recover it.
Based on contract law principles, which of the following is correct?

• A. Arjun is entitled to the percentage of profits as Ravi benefited from his efforts in building the playground.
• B. Arjun cannot claim the percentage of profits, as the playground was built at the request of the community leader and not Ravi.
• C. Ravi must pay Arjun the promised percentage since he made a verbal commitment to do so.
• D. Ravi has to pay Arjun only if Arjun can prove the playground was built specifically for his benefit.

Hint:

A valid contract requires a promise made in return for an act done at the promisor's request—not for past voluntary acts.

Answer 1

The Correct Option is B

Under Indian Contract Law and common law principles, for a contract to be enforceable, there must be a valid consideration and a clear agreement between the parties at the time the act is performed.
In this case:
Arjun built the playground as a voluntary act at the request of the community leader, not Ravi.
Ravi’s promise to pay a share of profits came after the playground was already built.
Since the consideration (building the playground) was not done at Ravi’s request, and there was no prior agreement between Arjun and Ravi, this does not constitute a legally enforceable contract.
Promises made in gratitude for past voluntary services are not binding under contract law. Thus, Arjun cannot enforce Ravi’s later promise.