Consideration in a contract must provide some benefit, detriment, or responsibility to be valid. It can be an act, promise, forbearance, or abstinence done at the desire of the promisor. Consideration needs to be real rather than illusory and cannot be something the promisor is already legally obligated to do. As a general rule, only parties to a contract can sue upon it due to privity of contract, however there are exceptions such as assignments, trusts, or contracts made through an agent.

1. Consideration

2. Definitions
Consideration
 It consists of either some right, interest, benefit or profit
accruing to one party, or some forbearance, detriment,
loss or responsibility given, suffered or undertaken by
the another.
 Consideration means something which is of some value
in the eyes of law.
 Sec.2 (d) defines consideration as “ when at the desire
of the promisor, the promisee or any other person has
done or abstains from doing , or promises to do or to
abstain from doing, something, such act or abstinence or
promise is called as consideration for promise.
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3. Legal Rules as to consideration

It must move at the desire of the promisor
 It may move from the promisee or any other person
 It may be an act, abstinence or forbearance or a return
promise
 It may be past, present or future
 It need not be adequate
 It must be real and not illusory
 It must be something which the promisor is not already
bound to do
 It must not be illegal, immoral or opposed to public policy
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4. Stranger to Contract
 There is a relationship subsisting between parties who have entered
into contractual obligations I.e. Privity of Contract.
 Two consequences of doctrine of privity of contract :
1. A person who is not a party to a contract cannot sue upon it even
though the contract is for his benefit and he provided consideration.
2. A contract cannot confer rights or impose obligations arising
under it on any person other than the parties to it.
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5. Exceptions to the rule that a Stranger
to a Contract cannot sue
 A trust or a charge
 Marriage settlement, partition or other family
sttlement
 Acknowledgement or estoppel
 Assignment of a contract
 Contracts entered into through an agent
 Covenants running with the land
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6. Q n A Session
THANKS
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7. Chapter 15 7