This document discusses the definition and exceptions to consideration under Indian contract law. It defines consideration as something in return, or quid pro quo, that makes a promise enforceable. Consideration is necessary for a valid contract but there are some exceptions. An agreement requires consideration unless it is in writing and registered, a promise to compensate for past services, or a promise to pay a time-barred debt. Other exceptions discussed include donations for charitable purposes, performance of statutory duties, completed gifts, contracts of agency, gratuitous bailments, and contracts of guarantee.

1. BY
MANUJ GAUTAM
BALLB 2ND SEM.

2.  The Indian Contract Act 1872, section 2(e), defines
an agreements as "every promise and every set of
promises, forming the consideration for each other is
an agreement." A promise is essentially an offer or a
proposal, made by a person or an entity, towards
another. ... Lawful Consideration.

3.  The term ‘consideration’ is used in the sense of “something
in return”, i.e. quid pro quo. An agreement without
consideration is a bare promise and exnudo pacto non
aritio actio, i.e., cannot be held to binding on the parties.
Sir Frederick Pollock has defined consideration, “It is the
price for which the promise of the other is bought, and the
promise thus given for value is enforceable.”
 In the case, Curie v. Misa the term was defined, “A
valuable consideration in the sense of the law may consist
either in some right, interest, forbearance, detriment, loss
or responsibility, given, suffered or undertaken by the
other.”

4.  As per section 25 of the Indian Contract Act does not
specify any exception similar to the common law but
lays down a few exceptions. It states that an agreement
without consideration is void, unless
(i.) it is in writing and registered,
(ii.) Or is a promise to compensate for past services,
(iii.) Or is a promise to pay a time debt barred.

5.  Section 2(d) of Indian Contract Act defines
consideration as follows-
◦ When:
◦ at the desire of the promisor
◦ promisee/any other person
◦ has done/abstained from doing something (or)
◦ does/abstains from doing something (or)
◦ promises to do/abstain from doing something such
act/abstinence/promise is called consideration

6.  Section 25 defines exceptions to rule an agreement
without consideration is void-
 Section 25 of the Contract Act reads- “Agreements without
consideration, void unless it is writing and registered or is a
promise to compensate for something or is a promise to pay
a debt barred by limitation law”. This section after defining
consideration in definition clause in Sec. 2(d) declares that
“consideration is the vital part of a valid contract” and also
states some exception to the rule that it establishes and in
such exceptions, the contract cannot be rendered void even
if it is without consideration.

7. Any contract entered
out of love & affection
voluntarily services
time barred debts consideration is not
necessary also

8. • In Subscription or Donation for charitable
purpose-
For every promise consideration is neccessary
but the question arises whether consideration is
necessary for charitable purposes.
◦ Abdul Aziz v. Masum Ali, AIR 1914 ALL 22-
In this case defendant promised to pay Rs.500/- for the repairs of
Mosque and did not pay. But the process of repair was not started.In an
action by the plaintiff, it was held that promise by the defendant was not
enforceable (since construction was not yet started).
◦ In another case Kedarnath v. Gorie Mohammedh I.L.R.(1887)14 Cal.64-
This was held enforceable on the ground that the construction was
already started relying upon the promise of the defendant.

9. • (c) In case of performance of adjusting duty.
o Chintaman v/s. Kaluraju
Here an advocated cannot ask his client for
extra fees for the better performance of duty. It
is his statutory duty and he is bound to do that.
He cannot ask for extra consideration. No
consideration is required in case of
performance of adjusting duty.

10. ◦ (d) In case of Completed Gift-
Consideration is not neccessary if gift was completed.
◦ (e) Contract of agency
◦ (f) Gratuitous Bailment
◦ (g) Contract of Guarantee

11. THANKS
MANUJ GAUTAM