Section 84

Section 84 of the Indian Contract Act, 1872, further elaborates on the presumption of consideration in favor of the creditor when a promise is made to pay a debt barred by limitation. The section states: 'Where a creditor, without being compellable to do so, promises to give time to the debtor for payment of the debt, or promises not to sue the debtor, the promise shall be presumed to be made for consideration.' This provision strengthens the position of the creditor by presuming that any concession made by the creditor to the debtor, such as giving more time to pay or agreeing not to sue, is supported by consideration. This presumption is significant because it protects the creditor's interests and encourages debtors to honor their obligations, even after the limitation period has expired.