Consideration

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Lectures by Dr. Tabrez Ahmad

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Consideration

  1. 1. Consideration DefinitionSection 2(d) of the Indian Contract Act 1872: Dr. Tabrez Ahmad, 1 http://corpolexindia.blogspot.in
  2. 2. Section 2(d)• “When at the desire of the promisor the promisee or any other person has done or abstained from doing, or does or abstains from doing, or promises to do or to abstain form doing something, such act or abstinence or promise is called a consideration for the promise”. Dr. Tabrez Ahmad, 2 http://corpolexindia.blogspot.in
  3. 3. Consideration• At the desire of the promisor• Promisee or any other person• Past, present or future• Such act, abstinence or promise is called consideration Dr. Tabrez Ahmad, 3 http://corpolexindia.blogspot.in
  4. 4. At the desire of the promisor Durga Prasad V. Baldeo 1880• Facts: The plaintiff on the order of the collector of a town, built at his own expense, certain shops in a bazar. The shops came to be occupied by the defendants who, in consideration of the plaintiff having expended money, in the construction, promised to pay him on commission on articles sold through their agency in the bazar. The plaintiffs action to recover the commission was rejected.• The act was the result not of the promise but of the collector’s order. Dr. Tabrez Ahmad, 4 http://corpolexindia.blogspot.in
  5. 5. Promisee or any other person• As long as there is a consideration for a promise, it is immaterial who has furnished it. It may move from the promisee, or,if the promisor has no objection, from any other person Dr. Tabrez Ahmad, 5 http://corpolexindia.blogspot.in
  6. 6. Privity of Contract and Privity of Consideration English LawIn the law of England certain principles are fundamental. One is that only a person who is a party to a contract can sue on it. A second principle is that if a person with whom a contract not under seal has been made is to be able to enforce it, consideration must have been given by him. Dr. Tabrez Ahmad, 6 http://corpolexindia.blogspot.in
  7. 7. English Law• 1. Consideration must move from the promisee and the promisee only. If it be furnished by any other person, the promisee becomes a stranger to the consideration and, therefore, can not enforce the promise.• 2. A contract can not be enforced by a person who is not a party to it even though it is made for his benefit. He is stranger to the contract and can claim no rights under it. Dr. Tabrez Ahmad, 7 http://corpolexindia.blogspot.in
  8. 8. Tweddle v.Atkinson 30 LJ QB218 1861The court of Queens Bench refused to allow a beneficiary who is not a party to a contract to enforce the contract.Fact: The plaintiff who was to be married to the daughter of one G and in consideration of this intended marriage G and the plaintiffs father entered into a written agreement by which it was agreed that each would pay the plaintiff a sum of the money. G failed to do so and the plaintiff sued his executors. Whiteman judge considered it to be an established principle “ that no stranger to the consideration can take advantage of a contract, although made for his benefit”. Dr. Tabrez Ahmad, 8 http://corpolexindia.blogspot.in
  9. 9. Tweddle v.Atkinson 30 LJ QB218 1861 JudgmentThus, although the sole object of the contract was to secure a benefit to the plaintiff, he was not allowed to sue as the contract was made with his father and not with him.The case laid the foundation of what subsequently came to be known as the doctrine of “ privity of contract”.This principle was affirmed by the House of Lords in Dunlop Pneumatic Tyre Co. V. Selfridge & Co. Dr. Tabrez Ahmad, 9 http://corpolexindia.blogspot.in
  10. 10. Dunlop pneumatic tyre Co., Plaintiff V. Selfridge & Co., Defendant, 1915• Facts: Plaintiffs sold certain goods to one Dew & Co. and secured an agreement from them not to sell the goods below the list price and that if they sold the goods to another trader they would obtain from him a similar undertaking to maintain the price list. Dew & Co. sold the motor tyres to the defendants who agreed not to sell the tyres to any private customer at less than the list prices. The plaintiff sued the defendant for breach of this contract. Dr. Tabrez Ahmad, 10 http://corpolexindia.blogspot.in
  11. 11. Dunlop pneumatic tyre Co., Plaintiff V. Selfridge & Co., Defendant, 1915• Judgment: It was held by Lord Viscount HALDANE that assuming that the plaintiffs were undisclosed principals no consideration moved from them to the defendants and that the contract was unenforceable by them Dr. Tabrez Ahmad, 11 http://corpolexindia.blogspot.in
  12. 12. Sec 25. An agreement without consideration is void unlessClause (i) It is in writing and registered.It is expressed in writing and registered under the law for the time being in force for registration of [documents], and is made on account of natural love and affection between parties standing in a near relation to each other; Dr. Tabrez Ahmad, 12 http://corpolexindia.blogspot.in
  13. 13. Sec 25. An agreement without consideration is void unless• Clause(ii) or is a promise to compensate, wholly or in part, a person who has already voluntarily done something for the promisor, or something which which the promisor was legally compellable to do ; Dr. Tabrez Ahmad, 13 http://corpolexindia.blogspot.in
  14. 14. Sec 25. An agreement without consideration is void unless• Clause (iii) or is a promise to pay a debt barred by limitation-It is a promise, made in writing and signed by the person to be charged therewith, or by his agent generally or specially authorised in that behalf, to pay wholly or in part a debt of which the creditor might have enforced payment but for the law for the limitation of the suits Dr. Tabrez Ahmad, 14 http://corpolexindia.blogspot.in
  15. 15. Explanations• 1. Nothing in section 25 shall affect the validity, as between the donor and donee, of any gift actually made• 2. An agreement to which the consent of the promisor is freely given is not void merely because the consideration is inadequate ; but the inadequacy of the consideration may be taken into account by the court in determining the question whether the consent to the promisor was freely given. Dr. Tabrez Ahmad, 15 http://corpolexindia.blogspot.in
  16. 16. Dr. Tabrez Ahmad, 16http://corpolexindia.blogspot.in
  17. 17. Project presentation and final draftHow to deal with bibliography Dr. Tabrez Ahmad, 17 http://corpolexindia.blogspot.in
  18. 18. • Foot note should be used only where really necessary, or where the information, though important, can not be incorporated in the text, without interfering its continuity and flow.• Reference in the text to the foot note is shown by an indication inserted at the point from where the reference is made. The indication also serves to identify the particular footnote referred to.• The super script system should be followed for indicating such references in the text. Dr. Tabrez Ahmad, 18 http://corpolexindia.blogspot.in
  19. 19. • In the super script system an index no. consisting of an Indian numeral, is placed just above the line at the point of the text from where the reference is made. The information in the footnotes to which the index no. refers also carries the identical number.• The footnote references starts from 1 (one) and is continued consecutively throughout the entire article Dr. Tabrez Ahmad, 19 http://corpolexindia.blogspot.in
  20. 20. Index Number in the Text:The index numbers consist of Indian numerals only; they should not be enclosed within brackets, or followed by a slash, and no full stop is to be placed after them The index numbers are numbered consecutively, and if a new index number is to be introduced, or a number is to be deleted, the whole sequence has to be renumbered, and the numbers in the footnotes changed, too. No gap in the sequence of numbers is permissible; and neither can the references be numbered as “1.1”, “1a”, etc., to accommodate a new reference. Only one index number is given at a particular point in the text. If there is more than one reference to it, all of them are grouped under that number in the footnote. Dr. Tabrez Ahmad, 20 http://corpolexindia.blogspot.in
  21. 21. Placement of the Index Number• The index number is placed at the exact point from which the reference is to be made to the footnote. In the case of a quotation, however the index number is placed at the end of a quoted matter, whether the quotation is run on in the, or given as a block quotation. In a run on quotation, the index number is placed outside the closing quotation mark. Dr. Tabrez Ahmad, 21 http://corpolexindia.blogspot.in
  22. 22. • Index Number in the Table: Instead of the numerals, only typographical symbols, or alphabets, are used in the tables for the footnotes, so that there is no confusion with the data. The usual symbols used are asterisk (*) and double asterisk (**) or the alphabets: a, b, c etc.• The corresponding footnotes are also similarly marked, and they precede the numbered footnotes, if the table appears on the same page as the text. Dr. Tabrez Ahmad, 22 http://corpolexindia.blogspot.in
  23. 23. Types of footnotesThe following types of footnotes, or notes, are commonly used• 1. Content Notes.• 2. Reference Notes.• 3. Bibliographical, or Citation Notes. Dr. Tabrez Ahmad, 23 http://corpolexindia.blogspot.in
  24. 24. 1 Content note:• Content notes are used for supplementing, clarifying, elucidating information beyond limits permissible in the text. The content notes should be brief, and used only where the information can not be included in the text.• Supplementary Information: Supplementary information which can not be included in the running text, but is nevertheless relevant and deserves to be pointed out, can be given as footnote.• Biographic information: Biographical information can be given as a footnote, if information would look out of place in the text. Dr. Tabrez Ahmad, 24 http://corpolexindia.blogspot.in
  25. 25. • Names: Real names, pseudonymous, or changed names can be indicated in the footnotes.• Places and boundaries: Change in names of places and geographical boundaries can also be similarly indicated in footnotes.• Translation or original of a quotation: Translation of an original quotation or original of a quotation can be given as footnote.• Weights, Measures, and Currencies: Modern equivalents of obsolete weights and measures, as also Indian equivalents of foreign currencies can also be given in footnotes, if it is not desired to give the information in the text. Dr. Tabrez Ahmad, 25 http://corpolexindia.blogspot.in
  26. 26. 2 Reference Notes• A reference can be made from a footnote to some other part of the text, or to the appendix, or even to another footnote. A reference may also be made from a footnote to another publication where the information has been treated more exhaustively. A reference to a divergent or conflicting viewpoint can also be made for the sake of comparison. Dr. Tabrez Ahmad, 26 http://corpolexindia.blogspot.in
  27. 27. • The following reference notes may be used.• See Reference: A ‘see’ reference is used to indicate that the information has been given in the place referred to, which may be seen, and is not being repeated here.• Examples:• See footnote 4, P. 205• See appendix 3• For details of this campaign see pp. 32-39.• See also reference: A see also reference is made where additional, or supplementary information is being referred to. Dr. Tabrez Ahmad, 27 http://corpolexindia.blogspot.in
  28. 28. • Comparison Notes: Comparison notes are used where different versions, conflicting practices, or different viewpoints are referred to. Such notes are preceded by the Latin abbreviation cf. (confere, ‘compare’). Dr. Tabrez Ahmad, 28 http://corpolexindia.blogspot.in
  29. 29. Project Presentation and Bibliography Dr. Tabrez Ahmad, 29 http://corpolexindia.blogspot.in
  30. 30. Presentation FormatIntroductionChapter-1 xxxxChapter-2 yyyyChpater-3 zzzzChapter-4 aaaaChapter-n etc.Conclusion & recommendationBibliographyCases referred Dr. Tabrez Ahmad, 30 http://corpolexindia.blogspot.in
  31. 31. Introduction• Para 1 Introduce your topic• Para 2 State the problem• Para 3 Particular Issues• Para 4 Research methodology• Para 5 Object and scope• Para 6 Hypothesis• Para 7 Chapterisation Dr. Tabrez Ahmad, 31 http://corpolexindia.blogspot.in
  32. 32. Chapter-1 Name of the chapterIntroduction of the chapterSub-chapters123Etcconclusion Dr. Tabrez Ahmad, 32 http://corpolexindia.blogspot.in
  33. 33. Bibliography• Text books alphabetical order• Journals alphabetical order• Periodicals alphabetical order• Websites Dr. Tabrez Ahmad, 33 http://corpolexindia.blogspot.in
  34. 34. Cases referred• Alphabetical order Dr. Tabrez Ahmad, 34 http://corpolexindia.blogspot.in
  35. 35. Bibliographical, or Citation Notes• In the ‘Bibliography’ or ‘Literature cited’, information about the document as a whole is given, while the bibliographical footnote gives information about the exact place in the document where the information can be found. Dr. Tabrez Ahmad, 35 http://corpolexindia.blogspot.in
  36. 36. • Since a footnote is not arranged alphabetically, but in the order in which references appear in the text, the names of the authors cited are written in the normal order and not with surname first as in bibliographies, or literature cited. Dr. Tabrez Ahmad, 36 http://corpolexindia.blogspot.in
  37. 37. • The same document may be cited more than once in a footnote, but in the bibliography the information is given only once. If a document is cited frequently in a footnote, an abridged form is used in subsequent citations, whereas the information in the bibliography is given in a full and complete form. Dr. Tabrez Ahmad, 37 http://corpolexindia.blogspot.in
  38. 38. The following are the more common types of bibliographical footnotes.• Reference to the publication as a whole.• Reference to the particular page, or portion.• Reference to an article or contribution in a book.• Reference to an article or contribution in a periodical. Dr. Tabrez Ahmad, 38 http://corpolexindia.blogspot.in
  39. 39. Reference to the publication as a whole• The following information appears in the first full reference to a publication as a whole: (1) foot note no. (2). Name of author or authors (3). Title of publication. (4). Edition. (5). Place of publication. (6). Publisher. (7). Year of publication (8). Total number of pages, or in the alternative the number of volume if more than one, and (9). Series note, if any.• Dr. Tabrez Ahmad, 39 http://corpolexindia.blogspot.in
  40. 40. Reference to the particular page, or portion of a book.• A reference to a portion of the book contains reference to specific page, or pages in addition to other bibliographical particulars Dr. Tabrez Ahmad, 40 http://corpolexindia.blogspot.in
  41. 41. Reference to an article or contribution in a book• The full reference contains (1) the footnote no., (2) the name of the author, or authors. (3). Title of the contribution, (4). Title of the main publication, preceded by the name of the editors or compilers where necessary, (5). Edition statement, (6). Volume number, if any, (7). Place of publication. ( 8) Publisher, (9). Year of Publication, (10) series note, (11) specific page, or the first and last page of the portion referred to and (12). The word ‘In: to separate the contribution from the main publication Dr. Tabrez Ahmad, 41 http://corpolexindia.blogspot.in
  42. 42. Reference to an Article in a Periodical• A footnote reference to an article in a periodical contains (1) footnote number (2) name or names of the author, or authors. (3). Title of the contribution. (4). Title of the periodical given an abbreviated form. (5). Volume number. (6). Issue number. (7). Date of issue, and (8). Specific page or first and last pages of the portion referred to. Dr. Tabrez Ahmad, 42 http://corpolexindia.blogspot.in
  43. 43. Thanks Dr. Tabrez Ahmad, 43http://corpolexindia.blogspot.in

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