It gives details of legal objectives of business law and void and voidable agreement

1. Lawful Consideration
Lawful Consideration
and Object
and Object
 Consideration
Consideration In the words of PULLOCK,
In the words of PULLOCK, “Consideration is the price
“Consideration is the price
for which the promise of the other is bought.
for which the promise of the other is bought.
According to section 2(d) of the indian contract act
According to section 2(d) of the indian contract act, “when at the desire of the promisor,the promise or any
, “when at the desire of the promisor,the promise or any
other person has done or abstains from doing or does or abstains from doing or promises to do or abstains
other person has done or abstains from doing or does or abstains from doing or promises to do or abstains
from doing something such act or abstainance or promise is called a consideration for the promise.
from doing something such act or abstainance or promise is called a consideration for the promise.
Essential elements of consideration
Essential elements of consideration
 Consideration must move at the desire of the promisor
Consideration must move at the desire of the promisor (DURGA PRASAD VS. BALDEV AND KEDAR NATH
(DURGA PRASAD VS. BALDEV AND KEDAR NATH
VS. GAURI MOHAMMAD need to be mentioned here.)
VS. GAURI MOHAMMAD need to be mentioned here.)
 Consideration may proceed from the promisee or any other person
Consideration may proceed from the promisee or any other person ( the case of chinnayya vs ramayya )
( the case of chinnayya vs ramayya )
 Consideration may be promise to do something or to abstain from doing something
Consideration may be promise to do something or to abstain from doing something
 Consideration may be past, present or future
Consideration may be past, present or future
 There must be some consideration,but consideration need not be adequate
There must be some consideration,but consideration need not be adequate
 Consideration must be legal,real or certain
Consideration must be legal,real or certain
 Essential elements of consideration
Essential elements of consideration
 Consideration must move at the desire of the promisor
Consideration must move at the desire of the promisor (DURGA PRASAD VS. BALDEV AND KEDAR NATH VS. GAURI MOHAMMAD need to be
(DURGA PRASAD VS. BALDEV AND KEDAR NATH VS. GAURI MOHAMMAD need to be
mentioned here.)
mentioned here.)
 Consideration may proceed from the promisee or any other person
Consideration may proceed from the promisee or any other person ( the case of chinnayya vs ramayya )
( the case of chinnayya vs ramayya )
 Consideration may be promise to do something or to abstain from doing something
Consideration may be promise to do something or to abstain from doing something
 Consideration may be past, present or future
Consideration may be past, present or future
 There must be some consideration,but consideration need not be adequate
There must be some consideration,but consideration need not be adequate
 Consideration must be legal,real or certain
Consideration must be legal,real or certain

2. Essential elements of consideration
Essential elements of consideration

 Consideration must move at the desire of
Consideration must move at the desire of
the
the promisor
promisor (DURGA PRASAD VS. BALDEV
(DURGA PRASAD VS. BALDEV
AND KEDAR NATH VS. GAURI MOHAMMAD need
AND KEDAR NATH VS. GAURI MOHAMMAD need
to be mentioned here.)
to be mentioned here.)

 Consideration may proceed from the
Consideration may proceed from the promisee
promisee or
or
any other person
any other person ( the case of
( the case of chinnayya
chinnayya vs
vs
ramayya
ramayya )
)

 Consideration may be promise to do something
Consideration may be promise to do something
or to abstain from doing something
or to abstain from doing something

 Consideration may be past, present or future
Consideration may be past, present or future

 There must be some consideration,but
There must be some consideration,but
consideration need not be adequate
consideration need not be adequate

 Consideration must be legal,real or certain
Consideration must be legal,real or certain

3. Agreement without
Agreement without
consideration
consideration
“void”- exceptions
“void”- exceptions
 Acc. To sec 25 the contract is said to
Acc. To sec 25 the contract is said to
be valid without consideration in the
be valid without consideration in the
following circumstances.
following circumstances.
1.
1. Contracts made out of natural love and
Contracts made out of natural love and
affection (
affection (the case of rajlakhi vs bhootnath AND
the case of rajlakhi vs bhootnath AND
venkant swami vs ranga swami need to be
venkant swami vs ranga swami need to be
mentioned here)
mentioned here)
2.
2. Promise to pay a time barred debt
Promise to pay a time barred debt
3.
3. Promises made to compensate for voluntary
Promises made to compensate for voluntary
services
services
4.
4. Contracts of agency
Contracts of agency

4. 5. Gift and donation (Abdul aziz vs
5. Gift and donation (Abdul aziz vs
mazoom ali AND kedar nath vs
mazoom ali AND kedar nath vs
Mohammed gauri )
Mohammed gauri )

5. Stranger to a contract and stranger
Stranger to a contract and stranger
to consideration
to consideration
The cases which need to be mentioned
The cases which need to be mentioned
here are-:
here are-:
 DUNLOP TYRE LMT. VS. SELIFRIDGE
DUNLOP TYRE LMT. VS. SELIFRIDGE
 SAID VS. BUTT
SAID VS. BUTT
 CHINNAYYA VS. RAMAYYA
CHINNAYYA VS. RAMAYYA

6. Exceptions to the rule
Exceptions to the rule
1.
1. Where a trust is created
Where a trust is created
2.
2. Family settlement ( Suppu Ammal vs.
Family settlement ( Suppu Ammal vs.
Subramanyan and Khawja
Subramanyan and Khawja
Mohammad vs. hussani Begam)
Mohammad vs. hussani Begam)
3.
3. In case of agency
In case of agency
4.
4. Charge on specific immovable
Charge on specific immovable
property
property
5.
5. Assignee
Assignee

7.  CONSIDERATION AND OBJECT
CONSIDERATION AND OBJECT
 UNLAWFUL CONSIDERATION AND
UNLAWFUL CONSIDERATION AND
OBJECT
OBJECT

8. CONDITIONS OF UNLAWFUL
CONDITIONS OF UNLAWFUL
CONSIDERATION AND OBJECT
CONSIDERATION AND OBJECT
1.
1. Act forbidden by law
Act forbidden by law
2.
2. If it is of such a nature that if permitted it
If it is of such a nature that if permitted it
would defeat the provisions of any law
would defeat the provisions of any law
3.
3. If it is fraudulent
If it is fraudulent
4.
4. If it involves or implies injury to a person or
If it involves or implies injury to a person or
property of another (the case of W.H.
property of another (the case of W.H.
SMITH vs CLINTON HARRIS)
SMITH vs CLINTON HARRIS)
5.
5. If the court regards it as immoral or
If the court regards it as immoral or
opposed to public policy
opposed to public policy

9. Agreements opposed to
Agreements opposed to
public policy
public policy
1.
1. Trading with alien enemy
Trading with alien enemy
2.
2. Agreements interfering with course of
Agreements interfering with course of
justice
justice
3.
3. Agreements to stiffing prosecution
Agreements to stiffing prosecution
4.
4. Agreements to change the the period
Agreements to change the the period
limitations
limitations
5.
5. Marriage brokerage agreements
Marriage brokerage agreements

10. 6.Agreements in restraint of parental
6.Agreements in restraint of parental
authority
authority
(
(the case of Gindu vs Smt Ani Besant can be
the case of Gindu vs Smt Ani Besant can be
mentioned)
mentioned)
7.Agreement for procuring public office
7.Agreement for procuring public office
(
(the case of Swaminath vs Muttu Swami AND
the case of Swaminath vs Muttu Swami AND
Parkinson vs college of Ambulance)
Parkinson vs college of Ambulance)
8. Agreements intefering with marital duties
8. Agreements intefering with marital duties
9. Agreements tending to create monopolies
9. Agreements tending to create monopolies
10. Agreements in restraint of personal freedom
10. Agreements in restraint of personal freedom
11. Agreements of sale of degree or honours
11. Agreements of sale of degree or honours

11. 12. Agreements for improper promotion of
12. Agreements for improper promotion of
litigation
litigation
i.
i. Maintenance
Maintenance
ii.
ii. Champterty (
Champterty (the case of Nuthaki Venkat Swami
the case of Nuthaki Venkat Swami
VS Katta Nagi Reddy AND Rampal vs neelkant)
VS Katta Nagi Reddy AND Rampal vs neelkant)
13. Agreements tending to create interest
13. Agreements tending to create interest
opposed to duty
opposed to duty
14. Other agreements
14. Other agreements

12.  CONSIDERATION AND OBJECT
CONSIDERATION AND OBJECT
UNLAWFUL IN PART
UNLAWFUL IN PART
 ADEQUACY OF CONSIDERATION
ADEQUACY OF CONSIDERATION