Consideration must move at the desire of the promisor: The first important rule of consideration is … A lets out his house to a prostitute. A purchases goods by paying money in cash. In other words, it is the price of the promise. The required elements of consideration include: 1. 1. A father gifted the whole of his property to his daughter on the condition that she should pay an annuity (annual payment) to her uncle (Father’s brother). It would be discussed as follows. • Basic rule: – A promise will not be enforceable unless it is supported by consideration. PreserveArticles.com is a free service that lets you to preserve your original articles for eternity. However, the claim should be bonafide. The contract must include a bargain for the terms of the exchange. Obviously not, as the polish on B’s car was done without his request. Negative consideration implies forbearing some right. For example, a creditor agrees to accept less than what is actually due to him. Before publishing your Article on this site, please read the following pages: 1. Following are the rules as to consideration: Every contract must be supported by consideration: No valid contract can arise without consideration. Consideration can be offered by the promisee or a third-party only at the request or desire of the promisor. 100 even if he wins the case as the lawyer was duty bound to do his best to win the case. 7. In the legal system, the term consideration in contract law refers to something of value given to someone in return for goods, services, or some other promise. Here, A’s forbearance to sue B is a good consideration. Consideration legally binds a contract, protecting both parties from potential lawsuits or misunderstandings. To create a legally enforceable contract, consideration must be present. If only one party offers consideration, the agreement is a "bare promise" and is unenforceable. Basic Rule: Contract = Promise + Consideration 1. ontract: ^A promise or set of promises for the breach of which the law gives a remedy _ (R2K §1) a) Consideration (performance or a return promise) must be bargained for (R2K §71.1) (1) Performance = an act other than a promise, a forbearance or the Legal Rules for valid consideration|Indian Contract Act, 1872 Notes| Consideration must move at the desire of the promisor. Desire (or request) of the promisor is essential: The act is done or loss suffered by the promisee … In other words, consideration may be given by the promisee or any other person on his (promisee’s) behalf. Rules for Consideration. For example, A agrees to sell his watch worth Rs. Gift, etc. (2) A promises to pay B Rs. If you are on a personal connection, like at home, you can run an anti-virus scan on your device to make sure it is not infected with malware. The court in Currie v Misa declared consideration to be a “Right, Interest, Profit, Benefit, or Forbearance, Detriment, Loss, Responsibility”. The legal rules of consideration state that consideration has to be certain, definitive, and competent. 1. Content Guidelines Consideration cannot be something that has happened in the past. A. 100 as repair charges for the scooter if A does not sue him in a court of law. Legal rules as to consideration: 1) Consideration must move at the desire of the promisor: the act done or loss suffered by the promise must have been done or suffered at the desire or request of the promisor. Therefore, the uncle was entitled to recover the annuity. Legal Rules Regarding Consideration Consideration must move at the desire of the promissor: an act forming consideration that must be done at the desire or request of the promisor. • Example: A promises to B to guarantee payment of the price of goods which B sells on credit to C. here selling of goods by B to C is Consideration for A’s pro… Can be present and future but not past. The case of Roscorla v Thomas (1842) illustrates that past conduct is not sufficient. gives rise to valid contract). 100 only for Rs. The technical requirement is either a detriment incurred by the person making the promise or a benefit received by the other person. Performance & security by Cloudflare, Please complete the security check to access. Consideration must not be something which the promisor is legally bound to do: A promise to do something which a person is legally bound to do is not a good consideration. Analyzing the above definition, Consideration can be: 1. Don’t be the one to let a trade sit in your … It is also called an executed consideration. What are the legal rules regarding a valid offer? n. 1) payment or money. 5 to A as reward for the service rendered. Must have some type of value. The act done at the desire of a third party or without the desire of the promisor cannot be a good consideration. Hence it was void, being without consideration and B was not liable to pay any commission. No. A promise to pay B an amount to his satisfaction if he cures his son. Our mission is to liberate knowledge. It is not good consideration as forbearance to sue in this case is not for a lawful act but an illegal act, which is punishable by law.”. Sections 82-94 are the provisions of Chapter 4, Topic 2 ("Contracts Without Consideration"), many of which are discussed in/ra. A. It is void. Consideration in contract law is simply the exchange of one thing of value for another. Payment of one hundred rupees extra in this case is not a good consideration as it was a promise to do something which the lawyer was legally bound to do. Past consideration which as general rule is not sufficient to make the promise binding. 100 extra to a lawyer for winning the suit. Completing the CAPTCHA proves you are a human and gives you temporary access to the web property. Exceptions To The Rule As To Past Consideration (1) It is generally declared a past consideration will support a subsequent promise if the consideration was given at the request of the promisor. PreserveArticles.com is an online article publishing site that helps you to submit your knowledge so that it may be preserved for eternity. Having a contract that clearly states this information helps a court to determine where the failure occurred, who is at fault, and what penalty to award. 4. The simplest definition is by Blackstone, “Consideration is the recompense given by the party contracting to the other”. PreserveArticles.com: Preserving Your Articles for Eternity, Difference between a Stranger to Consideration and A Stranger To Contract, Rules for performance of reciprocal promises. The exceptions have been given in Sec. Consideration, in contract law, an inducement given to enter into a contract that is sufficient to render the promise enforceable in the courts. W Without the involvement and the inclusion of this element, the contract cannot be fructified. Impossibility may be physical or legal. It is not certain as to what amount is payable. 2. 6. It should be noted that consideration for one party may be past, and for the other, it may be present or future. 10. 5,000 to B if he does not report the matter to the police. A valid Consideration in business law must involve every party, which means that each person involved in the contract must promise to do something and also promise not to do something. A court will enforce one party’s promise only if the other party promised something. In fact, it is also a kind of forbearance on the part of the creditor. 5 for past consideration. what one party must “pay” (not necessarily in financial terms) for promise of other party such that promise becomes legally binding (i.e. A promised to pay Rs. 500 if two parallel straight lines meet each other. It is a case of future consideration. As per Section 10 and Section 25 of the Indian Contract Act, 1872, consideration is essential in a valid contract. The court held that the agreement was without consideration because the improvement was not made at the request of B but at the request of the District Collector. This article covers the basics of the consideration requirement, including real-world examples of consideration. Adequacy of consideration – the court seldom considers adequacy of consideration. It should not be illusory. All the articles you read in this site are contributed by users like you, with a single vision to liberate knowledge. TOS Hence the law will not object to the inadequacy of consideration. … On the same day, the daughter entered into an agreement with her uncle and agreed to pay the annuity. (1) A promises to pay B Rs. Let us take another example. Must promise more than a current or existing obligation. The consideration: Is essential to every simple contract, Can be present and future but not past.

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