Law Consideration

8/3/2019 Law Consideration

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LAW CONSIDERATION-MONISHA


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A promise is not binding unless it is made for somethingin return.

The requirement of something in return is referred to asconsideration.

INTRODUCTION


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Section 2(d) of the indian contract act defines consideration as

When at the desire of the promisor, the promisee or any other person(a) Has done or abstained from doing(b) Does or abstains from doing(c) Promise to do or abstains from doing somethingSuch an act or abstinence or promise is called a consideration for thepromise.

Ex : A offers to sell his plasma TV set to B for Rs 50000.B accepts theoffer.Here Bs promise to pay Rs 50000 is the consideration for Aspromise to sell the TV is the consideration for Bs promise to pay Rs50000.

CONSIDERATION DEFINED


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Consideration is used in the sense of quid pro quo whichmeans something in return.

It need not neccesarily be in the form of cash or kind. It may be in the form of some right ,interest, profit or

benefit ,detriment ,loss, responsibility.

It can be a act or a promise to do or not to do something.

It may be past,present or future.

QUID PRO QUO


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Consideration must move at a desire of the promisor.

Consideration may move from the promisee or any otherperson.

Consideration must have some value.

Consideration must be defined as benefit or detriment.

It must be defined as past,present or future consideration.

It must be legal.

ESSENTIALS OF A VALID

CONSIDERATION


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Consideration must be done at the desire or request of thepromisor and not voluntarily or at the desire of the third party.

Ex: House trapped in fire.

CONSIDERATION MUST MOVE AT

THE DESIRE OF THE PROMISOR


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Consideration may proceed from the promisee or if the

promisor has no objection from any other person who is not aparty to the contract.

Ex: Property,old lady,daughter,Brother

CONSIDERATION MAY MOVE FROM THEPROMISEE OR ANY OTHER PERSON


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Consideration must be real tangible and must have somevalues in the eyes of laws.It Need not be adequate also.

Ex:A agrees to sell a house worth Rs 500000 and for Rs 50000only.A subsequently denies that his consent to the agreementwas freely given.In this case,the fact that the consideration is

inadequate may be taken in to account by the court indeciding whether or not As consent was freely given.

CONSIDERATION MUST HAVE SOME

VALUE


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Depending on the circumstances consideration may bepast,present or future.

PAST CONSIDERATION

It means a past act forbearance that took place and iscomplete before the agreement is made.

Ex: A finds Bs purse and gives it to him.B sent promises to pay

As expenses in doing so.

PAST,PRESENT OR FUTURE

CONSIDERATION


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PRESENT OR EXECUTED CONSIDERATION

It is an act or forbearance which moves simultaneously with

the promise.Ex: while shopping you promise to pay the cash andshopkeeper promises to deliver the goods.

FUTURE OR EXECUTORY CONSIDERATION

The expression promises to do or to abstain from doing refersto future.

Ex: An agrement in which the seller promises to deliver goodsnext week and the buyer agrees to pay for them on delivery.


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Consideration must invariably be legal.

Ex:A helping B in his work and promised to get payed for it.

Consideration should not be physically impossible or illusory.

Ex: Promise to double the money by magic,Make a dead manalive

CONSIDERATION MUST BE LEGAL


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Consideration is either some detriment to the promisee orsome benefit to the promisor.

Ex: If A promises to gift a diamond ring to B,his fiancee butsubsequently changes his mind,B cannot sue him for breach ofpromise.

CONSIDERATION SHOULD BE

BENEFIT AND DETRIMENT


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THANKYOU

Law Consideration

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