Consideration in contract by Ruby Sharma

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Consideration in contract by Ruby Sharma

  1. 1. 1RubySharma
  2. 2.  Consideration means something in return.  Consideration is the foundation of every contract. No consideration no contract.  A valuable consideration must result in the sense of the law ,may consist either in some right , interest , profit or benefit accruing to one party.  According to section 25, “an agreement without consideration is void but it is subject to certain exceptions”. 2RubySharma
  3. 3.  It must be given only at the desire of the promisor.  It may be past or present or future.  It must be of some value.  It must be real and not illusory(uncertain).  Something other than the promisor’s existing obligation.  It must be lawful. 3RubySharma
  4. 4. 1. Agreement on account of natural love and affection – Where an agreement is made on account of natural love and affection between the parties it is valid even without consideration provided following conditions are satisfied: - • It is expressed in writing. • It is registered under the law. • It is made only on account of natural love and affection between the parties. • The parties are standing in a near relation to each other. 4RubySharma
  5. 5. A promise to compensate a person, wholly or in part, is valid even without consideration, in the following cases: - • If the person has already voluntarily done something for the promisor. • If the person has done something which the promisor was legally compelled to do so. E.g.. X, supported Y’s infant son.Y promised to pay X’s expenses in doing so. This is a valid contract. Here ,X has done that act whichY was legally bound to do. 5RubySharma
  6. 6. A promise to pay a time barred debt without consideration is also valid and enforceable provided following conditions are satisfied: - a) It is made in writing b) It is signed by the debtor c) It relates to a debt which could not be enforced by a creditor because of limitation. 6RubySharma
  7. 7. 4. Gift actually made: - The gift actually made without consideration will not affect its validity. A gift once actually made cannot be recovered on the plea that it was void for want of consideration. 5. Promise to charities: - A promise to contribute to charity is enforceable by law because it is without considerations. 6. Contract of agency-No consideration is required to create an agency 7RubySharma

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