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Define Consideration with its Essential Elements.

Define Consideration with its Essential Elements.

Introduction:

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
  • Interest
  • Profit or benefit accruing to the one party or
  • Some forbearance
  • Detriment
  • 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
  • Lawful
    • The consideration must neither be unlawful nor opposed to public policy.

 

 

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