Complete notes of consideration chapter 3 in business and industrial law

1. Created By Rafay Iftikhar

2. Chapter 3
Consideration

3. Consideration
 When, at the desire of the promisor, the promisee or any
other person has done or abstained from doing, or does or
abstains from doing, or promises to do or to abstain from
doing, something, such act or abstinence or promise is
called a consideration for the promise.
 It is something which is of some value in the eyes of law.
 It may be some benefit to the plaintiff or some detriment to
the defendant.

4. Essential Elements
1. Consideration :
An act constituting consideration must have been
done at the desire or request of the promisor.
2. Movement Of Consideration :
Consideration may move from the Promisee or any
other Person, i.e., even a stranger. This means that as
long as there is a consideration for a promise it is
immaterial who has furnished it. But a stranger to the
consideration will be able to sue only if he is a party to
the contract.

5. 3. Adequacy :
The adequacy of the consideration is to be
determined by the parties to the contract at the time of
entering into it, but the court has no right to determine the
adequacy of the consideration. The law requires only that
the contract must be supported by consideration and not
its adequacy.
4. Value Of Consideration :
Although consideration need not be
adequate, it must be real and of some value in the
eye of law.

6. Agreement Without Consideration
“ An agreement without consideration is void. ”
Following are the exceptions :
1. Writing And Registration :
(a) If its in writing and registered under law for time being in
force for the registration of documents.
(b) On account of natural love and affection.
(c) Near relation between each other.

7. 2. Promise For Compensation :
No consideration is needed if it’s a promise to
compensate wholly or in part of a person who has already
voluntarily done something for promisor or something
which the promisor was legally compellable to do.
3. Debt Or Time Barred Debt :
A promise without consideration is legal in the eyes of
law if it is made to pay debt or any time barred debt.
4. Completed Gifts :
A completed gift is valid even if it is made without
consideration.

8. Created By Rafay Iftikhar