Consideration - Essential Element of a Valid Contract - legal, Law, Contract.

1. 1RENU VERMA

2. ONE OF THE ESSENTIAL ELEMENTS
A NUDE CONTRACT – VOID
SOMETHING – IN RETURN
S. (d) 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.
2RENU VERMA

3. 1. IT MUST MOVE AT THE DESIRE OF THE
PROMISOR
2. IT MAY MOVE FROM THE PROMISEE OR ANY
OTHER PERSON
3. IT MAY BE AN ACT, ABSTINENCE OR
FORBEARANCE OR A RETURN PROMISE
4. IT MAY BE PAST, PRESENT OR FUTURE
5. IT NEED NOT BE ADEQUATE
6. IT MUST BE REAL AND NOT ILLUSORY
7. IT MUST BE STH. WHICH THE PROMISOR IS NOT
ALREADY BOUND TO DO
8. IT MUST NOT BE ILLEGAL, IMMORAL OR
OPPOSED TO PUBLIC POLICY
3RENU VERMA

4.  PRIVITY OF CONTRACT
◦ A PERSON NOT A PARTY CANNOT SUE
◦ CONTRACT CANNOT CONFER RIGHTS AND
OBLIGATIONS ON NON-PARTNERS
 EXCEPTION:
◦ TRUST OR CHARGE
◦ MARRIAGE SETTLEMENT, PARTITION OR OTHER
FAMILY ARRANGEMENTS
◦ ACKNOWLEDGEMENT OR ESTOPPEL
◦ ASSIGNMENT OF A CONTRACT
◦ CONTRACTS ENTERED INTO THROUGH AN AGENT
◦ COVENANTS RUNNING WITH THE LAND
4RENU VERMA

5. EXCEPTIONS TO
THE RULE:
“NO
CONSIDERATION
NO CONTRACT”
5RENU VERMA

6.  LOVE AND AFFECTION
 COMPENSATION FOR VOLUNTARY SERVICES
 PROMISE TO PAY A TIME-BARRED DEBT
 COMPLETED GIFT
 AGENCY
 CHARITABLE SUBSCRIPTION – PROMISEE
ACTED TO HIS DETRIMENT
6RENU VERMA

7. 7RENU VERMA