Consideration:-

Consideration for a particular promise exists where some

right, interest, profit or benefit accrues (or will accrue)

to the promisor as a direct result of some forbearance,

detriment, loss or responsibility that has been given,

suffered or undertaken by the promisee. The consideration

must be executory or executed, but not past. Consideration

is executoryConsideration can be anything of value (such as

an item or service), which each party to a legally-binding

contract must agree to exchange if the contract is to be

valid. If only one party offers consideration, the

agreement is not legally a binding contract. In its

traditional form, consideration is expressed as the

requirement that in order for parties to be able to enforce

a promise, they must have given something for it (quid pro

quo): something must be given or promised in exchange or

return for the promise.

contract:-

A contract is an exchange of promises between two or more

parties to do or refrain from doing an act which is

enforceable in a court of law. It is where an unqualified

offer meets a qualified acceptance and the parties reach

Consensus In Idem. The parties must have the necessary

 capacity to contract and the contract must not be either

trifling, indeterminate, impossible or illegal.

Hence by watching both definitions you can understand that

contract required benefit for both parties. if there is no

consideration for one party it means that party is not

getting any benefit so. If there is no benefit for both

party it means why they will make contract. And if benefit

is only for one party then that is no contract because it

is not full feeling contract first essential of exchange of

promises, goods, services or something worth full for both

A promise without consideration cannot create a legal obligation. The general

rule is that an agreement made without consideration is void. This rule is
contained in Section 25 of the Indian Contract Act, which declares that ‘an
agreement made without consideration is void’. This means that consideration
is a must in all the cases. But this Section provides certain exceptions where an
agreement is valid even without consideration. These cases are :

Agreement made on account of natural love and affection [Section 25 (1)]: An

agreement without consideration is enforceable if, it is (i) expressed in writing
and (ii) registered under the law for the time being in force for the registration of
documents, and is (iii) made on account of natural rove and affection, (iv)
between the parties standing in near relation to each other.

The following conditions must be satisfied for the application of the exception:

 The agreement is in writing

 It is registered.

 It is made on account of natural love and affection

 It is between parties standing in near relation to each other.

Example: A, out of natural love and affection, promises to give his son B 5,000.
A puts his promise to B in writing and registers it. This is a valid contract.
The expressions ‘near relations’ and ‘natural love and affection’ have not been
defined in the Indian Contract Act.

However, the expression ‘near relations’ will include parties related by blood or
marriage. Some kind of natural love and affection is also implied. But love and
affection may, sometimes, be overruled by external circumstances. For
example, in Rajlakhi Devi vs. Bhootnath, husband promised to pay his wife a
fixed sum of money every month for her separate residence and maintenance.
The agreement was contained in the registered document which mentioned
certain quarrels and disagreements between the two. The court refused to hold
the agreement valid as it could not find any love and affection between the
parties whose quarrels had compelled them to separate.

Agreement to compensate for past voluntary services [Section 25 (2)]: An

agreement without consideration is enforceable, if it is a promise to
compensate wholly, or in part) a person who has already voluntarily done
something for the promiser, or something which the promiser was legally bound
to do. Example: A finds B’s purse and gives it to him. B promises to give him
100. This is a contract.

In order that a promise to pay for past voluntary services be binding, the
following conditions must be satisfied :

 The services should have been rendered voluntarily.

 The services must have been.rendered for the promiser and not anybody else

Agreement to pay time-barred debt [Section 25(3)]: According to this exception, a

promise to pay a time-barred debt wholly or in part is enforceable if such
promise is in writing and signed by the debtor or his authorized agent. A time
barred debt-cannot be recovered and, therefore, a promise to repay such debt
is without consideration.

The following conditions must be satisfied for the application of this exception:

 The promise should be in writing.

 It should be signed by the promiser or his authorized agent.

 The debt must be time-barred i.e., the limitation period for the recovery of the
debt must have expired
 There must be an express promise to pay. It may be to pay whole or part of the
debt.

Completed gift: The gift actually made by a donor and accepted by the done will
be valid even without the consideration. So in case of a gift actually made,
consideration is not necessary.

Contract of agency: Section 185 specifically states that no consideration is

necessary to create an agency. Thus, when a person is appointed as an agent,
his appointment is valid even if there is no consideration. Although, generally,
an agent gets remuneration by way of commission for the services rendered,
but no consideration is immediately necessary at the time of appointment.