際際滷

際際滷Share a Scribd company logo

Consideration

Download as PPTX, PDF
M
Micheal Solomon Lawrence

The document discusses the legal concept of consideration in contracts. It defines consideration as something given in return for a promise, which makes a promise enforceable. Consideration can take several forms, including an act, abstaining from an act, or a return promise. For a contract to be valid, consideration must be given at the desire of the promisor, be lawful and of some value. Exceptions to the requirement of consideration include natural love and affection, compensation for past services, and promises to pay time-barred debts.

1 of 9
Download to read offline
CONSIDERATION MICHEAL SOLOMON L
CONSIDERATION According to Sec 25 of the Contract Act, An Agreement without Consideration is VOID Consideration is the BACKBONE of all promises. A Promise without Consideration is called NUDUM PACTUM. (Bare Promise) Consideration is a technical term used in the sense of Quid Pro Quo which means SOMETHING IN RETURN. Consideration is the price for which the promise of the other is bought and promise thus given for value is enforceable.
EXAMPLE Manu agrees to sell his car to Arjun for RS.2 Lakhs. Car worth RS 2Lakhs is the consideration for Arjun and RS 2 Lakhs is the consideration for Manu.
Consideration may be An act of doing something Abstaining from doing something A return promise
Definition According to Sec (2) of the Indian Contract Act Consideration is defined as when at the desire of the promisor, the promisee or any other person has done or abstained from doing or does or abstains from doing or promises to do or abstain fro doing something , such act or abstinence or promise is called a consideration for the promise
Essentials and legal rules for valid consideration Consideration must move at the desire of the promisor Consideration may be given by the promisee or any other person Consideration must be lawful Consideration must be real and not illusory Consideration must be of some value in the eyes of law Consideration must not be the performance of existing duties Consideration need not be adequate Consideration may be either positive or negative consideration may be past, present or future
Contract without consideration is void - Exceptions Natural love and affection Compensation of past voluntary services Promise to pay a time barred debt Completed gift actually made Consideration is not required for the creation of agency
Privity of Consideration / Stranger to Consideration The term Privity of Consideration means stranger to consideration or consideration given by any other person other than promisee.
THANK YOU

More Related Content

Consideration

  • 2. CONSIDERATION According to Sec 25 of the Contract Act, An Agreement without Consideration is VOID Consideration is the BACKBONE of all promises. A Promise without Consideration is called NUDUM PACTUM. (Bare Promise) Consideration is a technical term used in the sense of Quid Pro Quo which means SOMETHING IN RETURN. Consideration is the price for which the promise of the other is bought and promise thus given for value is enforceable.
  • 3. EXAMPLE Manu agrees to sell his car to Arjun for RS.2 Lakhs. Car worth RS 2Lakhs is the consideration for Arjun and RS 2 Lakhs is the consideration for Manu.
  • 4. Consideration may be An act of doing something Abstaining from doing something A return promise
  • 5. Definition According to Sec (2) of the Indian Contract Act Consideration is defined as when at the desire of the promisor, the promisee or any other person has done or abstained from doing or does or abstains from doing or promises to do or abstain fro doing something , such act or abstinence or promise is called a consideration for the promise
  • 6. Essentials and legal rules for valid consideration Consideration must move at the desire of the promisor Consideration may be given by the promisee or any other person Consideration must be lawful Consideration must be real and not illusory Consideration must be of some value in the eyes of law Consideration must not be the performance of existing duties Consideration need not be adequate Consideration may be either positive or negative consideration may be past, present or future
  • 7. Contract without consideration is void - Exceptions Natural love and affection Compensation of past voluntary services Promise to pay a time barred debt Completed gift actually made Consideration is not required for the creation of agency
  • 8. Privity of Consideration / Stranger to Consideration The term Privity of Consideration means stranger to consideration or consideration given by any other person other than promisee.