This document discusses the concept of consideration in contract law. It defines consideration as "something in return" that has value in the eyes of the law. Consideration is essential to forming a valid, enforceable contract. There are several key elements for consideration: it must move from the promisee or another person at the request of the promisor; it can be past, present or future; it does not need to be adequate but must be real and lawful. Exceptions to the requirement of consideration include gifts, charity contributions, and contracts supported by natural love and affection if certain conditions are met.

1. PRESENTATION ON
CONSIDERATION
Submitted to : Ms. Neetu
Submitted By : Tanvi
MBA 1ST SEM
GBS 1095

2. CONTRACT
• According to Section 2(n) of Indian Contract
Act 1872, “An Agreement enforceable by law
is a Contract.”
• Thus, contract must have following elements:
i. An agreement
ii. Its enforceability at law

3. CONSIDERATION
• Consideration meaning “Something In Return”
which have some value in the eyes of law.
i.e. QUID-PRO-QUO
• This ‘Something’ may be a Right, Interest,
profit or some benefits accrue to one party.
• It is the Price of Promise.

4. Definition….
• According to Pollock, “Consideration is the
price for which the promise of other is bought
and promise thus given for value is
enforceable.”

5. Example…….

9. Essentials of Valid Consideration
1) It must move at the desire of the promisor
2) It must move from promisee or any other
person.
3) It must be Past, Present or Future.
4) It must not be Adequate.
5) It must be Real.
6) It must be Lawful.
7) It must be something which the promisor is not
already bound to Do.

10. 1) It must move at the desire of the
promisor:-
Consideration must have been done at the desire
or request of the promisor.
Example:
A’s Horse is lost B goes in search for him.
Can B claims remuneration from A?
Case Reason/Decision
a) If B does this act voluntarily
b) If B does this act at the request of A
c) If B does this act at the request of C

11. CASE
DURGA PRASAD VS. BALDEO(1880)
On the request of the collector of a town. A built
certain shops in the bazaar at his own expenses.
These shops were occupied by B.
As , A spent money in construction, B promised
to pay some money to A. thus A sued B to
recover the money as promised

12. 2) It must move from Promisee or any
other person
UNDER ENGLISH LAW: it must move from
promisee.
UNDER INDIAN LAW: It may move from
promisee or any other person
• Example :-

13. Case study
CHINNAYYA Vs RAMAYYA (1882)
• An old lady made a gift of her property to her
daughter, with a direction to pay a certain sum
of money to the maternal uncle annually. On
the same day, daughter executed a deed in
writing in favour of her maternal uncle to pay
the annuity, later on daughter refused on the
ground that no consideration had moved from
uncle.

14. 3) It may be Past, Present, or Future
Past consideration:
Present consideration

15. Future consideration:
The consideration which is to be moved after
the formation of agreement.
Example:
A agrees to paint Y’s picture for Rs. 500 when
picture will be completed Y will pay Rs. 500

16. 4) It must be real, not illusory

17. 5) It must not be Adequate..
Something in return means need not
necessarily equal to something given.
Example :
A was in need of money he sells his scooter
worth Rs. 40,000 for Rs. 8,000 only.

18. 6) It must be a Lawful consideration
Consideration for an agreement must not be
illegal, forbidden by law, or opposed to publc
policy.

19. 7) It must be something which the
promisor is not already bound to do:
Collins Vs Godfrey (1834)
Case: A promised to pay money to a police
officer to investigate into a crime.
Justification: The officer is already under a duty
to do so by law

20. No Consideration No Contract
EXCEPTIONS
1) Gifts
2) Contribution to charity
3)Natural Love and Affection (Sec, 25(1)): It is valid if:
• It is expressed in writing.
• It is registered under law
• Made on natural account of love
Example:
A, for love and affection promises to give his son Rs 3000.
A put his promise in writing. The promise is binding on A
and it is valid contract without consideration.

21. 4)Compensation for services rendered
(Sec. 25(2)):- It is valid if following conditions are
satisfied:
i. The service ,must have been rendered
voluntarily.
ii. The promisor must be in existence at the
time when services were rendered
iii. The services rendered should not be immoral
iv. The promisor must agree now to
compensate the promisee.

22. Example….
A find’s B’s purse and gives it to him .
B promises to give A Rs. 50 .
This is valid contract

23. Difference between..
INDIAN LAW ENGLISH LAW
Consideration may move from promisee
or any other person .
Consideration must move from the
promisee.
Stranger to consideration can sue Stranger to consideration cannot sue
Consideration may be past present or
future
Consideration can be present or future
Natural love and affection is considered to
be a good consideration and may support
contract
It only means something of some value in
the eyes of law moving from the promisor.
Love and affection is not sufficient.