CONSIDERATION as per INDIAN CONTRACT ACT, 1872
1) Consideration is one of the essential
elements of valid contract as per Section-10 of Indian Contract Act,1872.I
2) It is defined in section-2(d) of Indian
Contract Act, 1872.
3) Consideration is also known as
Quid-pro-quo, which means something in return.
4) An Agreement without consideration is
void.
5) As per Sec-25 of Indian Contract Act,
1872 there are exceptions that agreement is valid even though there is no consideration.
i.
Promise
made out of natural love and affection.
ii.
Promise
made by past voluntary services.
iii.
Promise
made for time-borrowed debts.
iv.
Gifts
actually made. Ex: - Gift Deed.
v.
Creation
of Agency.
vi.
Subscription
for charity.
Legal Rules for Valid Consideration as per Indian Contract
Act,1872.
1.Consideration
must be at the desire of the promisor.
2.Consideration
may move from promise or any other person.
3.Consideration
may be positive or negative.
4.Consideration
may past,present or future.
5.Consideration
must be something in the eyes of law.
6.Consideration
must be real and not illusionary.
7.Consideration
should not be illegal, immoral or opposed to public policy.
8.Consideration
need not be adequate.
OTHER IMPORTANT POINTS :-
a. There can be stranger to the
consideration.
b. A stranger to consideration can sue.
c.Consideration includes safety
measures, services , risks etc.
d. Under English Law , Consideration
must move from promise only and there cannot be stranger to the consideration.
NAVEEN REDDY AKITI,
B.COM STUDENT,
O.U. , HYDERABAD.
