Forbearance to Sue: What’s the Meaning?
Meaning of Forbearance to Sue
Forbearance to sue means voluntarily refraining from exercising a legal right to sue someone, even though the person has a valid cause of action.
In simpler terms, it is when a person chooses not to file a lawsuit or agrees not to enforce a legal right in exchange for some benefit.
Forbearance itself can be valid consideration for a contract.
Legal Position under Indian Law
Section 2(d) of the Indian Contract Act, 1872 defines consideration as:
“When at the desire of the promisor, the promisee does or abstains from doing something he is legally entitled to do, such abstinence is consideration for the promise.”
Key Principle: If a person forgoes a legal right to sue, it can constitute valid consideration for a contract.
Essentials of Forbearance to Sue
Valid Legal Right: The person must have a legally enforceable right.
Voluntary Refraining: The person must voluntarily abstain from suing.
Desire of Promisor: The forbearance must be at the request or desire of the promisor.
Benefit to Promisor or Detriment to Promisee: Forbearance acts as consideration because it benefits the promisor or involves some detriment to the promisee.
Example:
A owes money to B. B agrees not to sue A for repayment if A promises to pay some extra amount later.
Here, B’s forbearance to sue is valid consideration for A’s promise.
Case Law:
Hamer v. Sidway (1891) – The uncle promised his nephew money if he refrained from drinking, smoking, and gambling. The nephew’s forbearance to do legal acts (which were his legal rights) was held as valid consideration.
Chinnaya vs Ramayya (1882) – Forbearance to sue can constitute valid consideration in Indian law.
Significance:
Forbearance to sue strengthens enforceability of contracts because it provides mutual benefit or detriment.
It is commonly used in settlement agreements, compromises, and debt arrangements.
✅ Summary:
Forbearance to sue = refraining from exercising a legal right to sue.
It can be valid consideration for a contract under the Indian Contract Act.
Essentials: legal right exists, voluntary abstinence, at promisor’s request, benefits promisor or involves detriment to promisee.
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