Define Consideration with its Essential Elements.
Consideration is one of the most important essential element of a Valid contract.
The Consideration means something in return. i.e. Quid – Pro – quo .
What is something?
- Decided in the case of Currie v. misa
- Some right
- Profit or benefit accruing to the one party or
- Some forbearance
- Loss or responsibility given, suffered or undertaken by the other.
Thus , consideration must result in a benefit to the promisor , and a detriment or loss to the promise or a detriment to both.
According to Section 2(d) of the Indian Contract Act , 1872 Defines consideration as under :
“When at the desire of the promisor , the promise or any other person has done or abstained from doing , or does or abstains from doing , or promises to do or abstain from doing something , such act or abstinence or promise is called a consideration for the promise”
Essential Elements of Valid Consideration
- It must be given only at the desire of the promisor
- Act done by voluntarily
- Act done by request of Promisor
- Act done by request of third Party
- It may Move From any person
- It may be Past / Present / Future
- In English Law does not recognize the past consideration
- It must be of some Value
- Some value in the Eyes of Law
- Adequate or Inadequate
- It Must Real and Not Illusory
- To Give Life to Death Person in 1 Lac Rs.
- I will give you remuneration for some work. (required Exact Amount)
- Something other than the promisor’s existing
- Ones the Agreement done and apart from that given amount cannot recover from the promisor
- The consideration must neither be unlawful nor opposed to public policy.