Essentials of a valid Consideration

Consideration must move at the desire of the promisor: the act or forbearance must be done at the desire of the promisor. If it is done at the instance of third party or without the desire of the promisor, it is for a consideration. Act done at the desire of a third party is not a consideration. Act must be done voluntarily at the desire of the promisor.

If A does any act without the desire of B or without B offering, it will not amount to consideration. There should be a proposal for an acceptance to follow and then, when the other person does something in consequence of such a proposal acceptance would be valid and such an act or forbearance of doing or not dong something will be consideration.

A promised by letter to pay B a certain sum of money. In that letter, C promised to give her daughter for marriage with B. A failed to pay B and C filed a suit on A to recover the amount. C cannot force A to pay the money to B because C’s promise to marry his daughter to B did not move at the desire of A, the promisor.

In Durgaprasad v Baldeo (1880-3 All221) , D promised to pay a commission on the articles sold through their agency in a bazar in which they occupied shops, in consideration of B having extended money for the construction of such bazaar. Such money had been expended by B at the desire of the Collector of the District. It was held that such expenditure was not consideration since it was not made at the desire of D.

Consideration may move from the promisee or any other person — Stranger to a contract: A consideration may move from promisee or any other person. Consideration from a third party is a valid consideration. Under English law, however, consideration must move from the promises only.

A gifted property to her daughter with the condition that the daughter should pay an annuity to A’s brother B. However the daughter failed to keep her promise and the bother sued the daughter to claim the annuity.

Consideration may be past present or future: Law as to past consideration. Where the promise has done or abstained from doing something , it is a case of a past consideration: In India, a past consideration is sufficient to sustain a valid contract. If given at a request of a promisor it will support a subsequent promise.

Consideration may be an act of doing or abstaining from dong something or it may be an act of forbearance or abstinence. To repeat, a person may promise to do seething or not to do something or not to do something, or refrain from doing something or a promise. an act, abstinence or promise is called a consideration for the promise. To do or not to do something in return is consideration. Similarly, the party may drive benefit, suffer loss or damage or inconvenience, it will yet be regarded in law as a consideration for the promise.

Consideration need not be adequate: Consideration need not be adequate but must be of some value in the eyes of law Court will not sit to decide the adequacy of consideration. Adequacy of consideration is for the parties consider at the time of making the agreement and not for the Court when it is sought to be enforced. However, there should be some value, because the law will not enforce a promise given for nothing, except in cases provided under section 25 of the Act.

Consideration must be real and not illusory: Consideration must be real and of some value in the eyes of law although it need not be adequate. Consideration is not real when it is uncertain illusory or when it is physically or legally impossible to perform. It is sufficient if the consideration is of slight value as long as it is not unreal and illusory.

Performance of exiting obligations is no consideration: The performance of an act by a person who is already bound to perform the same either as a pubic duty or under the existing contractual obligation cannot be consideration for a contract.

Forbearance is sue is a good consideration: Forbearance to sue or a promise to forbear, when requested will support a promise by another. It is abstinence within the meaning of section 2(d).

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