Consideration refers to something of value that is exchanged between parties to a contract, creating a legal obligation. Consideration is required for a contract to be valid and enforceable. It can take various forms, such as goods, money, services, or promises of these, as long as each party provides something of value to the other. In this example, Bishnu's agreement to refrain from playing PUBG in exchange for Aman's promise to pay him Rs. 5,000 was considered valid consideration by the court, even though Aman did not directly benefit, because Bishnu gave up a legal right.
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Consideration
1. Consideration
‘Consideration’ means “something in return”, i.e. quid pro quo that is an
essential element to create legal relationship.
Consideration is the price for the contract. An agreement without
consideration is void and thus not enforceable by law except under
certain circumstances.
Consideration can be anything of value (such as any goods, money,
services, or promises of any of these), which each party gives as a quid
pro quo to support their side of the bargain. Mutual promises constitute
consideration for each other.
2. Consideration: Benefit and Detriment
Agreement 1: Bishnu is buying ten books from Aman for Rs. 300.
Agreement 2: Bishnu has rented Aman’s BMW, for Rs. 10 lakh a year, for the next five
years.
Agreement 3: Bishnu will bake a Cake for Aman and in return, Aman will give Bishnu
tickets for Justin Bieber Concert.
Agreement 4: Aman has 3 tractors in Cuttack. Under the law a license holder can
leash the tractor. Aman leashes 1 tractor for 10 days to Bishnu
3. Case: Agreement and Detriment
Aman promised Bishnu that if he quit playing PUBG for money until
reaching the age of twenty-one, he would pay him Rs 5,000. Bishnu
fully performed his end of the agreement. Unfortunately,Aman
drowned without having paid Bishnu.Aman’s estate refused to pay
Bishnu, arguing that the contract lacked consideration.The court held
in favor of Bishnu, finding adequate consideration in Bishnu’s
forbearance of legal activities in exchange for the Aman’s promise to
pay him Rs 5,000.Aman did not gain any direct material benefit from
Bishnu’s behavior is irrelevant. Bishnu gave up his legal right to
engage in those behaviors, and that was sufficient consideration.