CONSIDERATION

When a party to an agreement promises to do

something, he must get something in return.
This something is defined as consideration.
Consideration must flow from both sides of the
contract
It can be:
A promise to do something
A promise not to do something
A benefit for the promisee
A benefit for a third person at the promisees direction

LEGAL RULES AS TO
CONSIDERATION

IT MUST MOVE AT THE DESIRE OF THE PROMISOR

A saves Bs goods from fire without being asked to do so. A

cannot demand payment for his services.

D constructed a market at the instance of the Collector of a

District. The occupants of the shops in the said market promised
to pay D a commission on articles sold through their shops. Later
on they failed to pay commission and D filed a suit for the
recovery of same.
There was no consideration because the money was not spent by
the plaintiff at the request of the defendants, but voluntarily for
a third person and thus the contract was void

IT MAY MOVE FROM THE PROMISEE OR ANY OTHER

PERSON
Consideration even may move from a stranger.
As per Indian law it is immaterial who has furnished
the consideration.
But the stranger to the consideration will be able to
sue only if he is a party to contract.
A lady, by a deed of gift transferred certain property
to her daughter, with a direction that the daughter
should pay an annuity to As brother. On the same
day the daughter executed a writing in favour of her
uncle, agreeing to pay the annuity. Afterwards, she
declined to fulfill her promise saying that no
consideration had moved from her uncle.
Held As brother was entitled to maintain the suit.

It must be an act, abstinence or forbearance

or a return promise.
Forbearance

to sue.

A husband in consideration of his wifes promise to forbear

from filing a suit, agreed to pay her maintenance
allowance . It is a valid contract

Compromise

of a disputed claim
Composition with creditors

It may be past, present or future

A, a minor was given the benefit of certain
services by the plaintiff, who rendered those
services, not voluntarily but at the desire of A
These services were continued even after
majority at the request of A Subsequently A
promised to pay an annuity to the plaintiff.It was
held that the past consideration was a good
consideration
D

promises to deliver certain goods to P after a

week. P promises to pay after a fortnight. The
promise of D is supported by the promise of P.

It need not to be adequate

Something

in return need not necessarily be equal in

value to something given.
The courts do not exist to repair your bargains
A agrees

to sell my 2006 BMW 525 to Alex for

Rs 2000.The consideration is Rs 2000 in
exchange for the BMW .The court will not
look at whether the value is enough; and the
consideration is sufficient

Element

of free consent

It must be real not illusory.

Physical

impossibility

A charter party contained a clause that a particular ship

would sail on a specified date that had already expired.

Legal

impossibility
Uncertain consideration

To pay a REASONABLE amount

It must be something which the promisor is not

already bound to do.
Summons

to appear in civil suit

Additional sum to an advocate if the suit was
successfull

It must not be illegal, immoral or opposed to public

policy.
A promises to obtain employment for B in the public
service and in return B promises to pay Rs 50000

A CONTRACT WITHOUT
CONSIDERATION IS VOID EXCEPTIONS

Love and affection

Registered

agreement based on natural love and affection

between near relatives is enforceable even if it is without
consideration.

An

elder brother, on account of natural love and

affection, promised to pay the debts of his younger
brother. The agreement was put to writing and was
registered. Held : The agreement was valid.
F for natural love and affection promises to give his son S
Rs. 1000. F puts his promise to S in writing and registers
it. Held it is a contract.
A

Hindu husband by a registered document, after referring to

quarrels and disagreements between himself and his wife,
promised to pay his wife a sum of money for her maintenance
and separate residence. it was held that the promise was
unenforceable

Compensation for voluntary services

A

promise to compensate a person who has already

voluntarily done something for the promisor is
enforceable even though without consideration
A finds Bs purse and gives it to him. B promises to give
A rs. 50. this is a contract
A says to B at the risk of your life you saved me from a
serious accident. I promise to pay you Rs. 1000. there is
a contract between A & B.

Promise to pay a time barred debt

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