What is consideration in Indian Contract Act?

What is consideration in Indian Contract Act?

Consideration is the price for which the promise of the other is bought, and the promise thus given for value is enforceable.” An agreement without consideration is a bare promise and exnudo pacto non aritio actio, i.e., cannot be held to binding on the parties. …

What is consideration in contract law PDF?

An act, forbearance, or promise by one party to a contract that constitutes the price for which he buys the promise of the other. Consideration is the price for which promise of the other is bought and the promise, thus, given for value is enforceable.

What is consideration in a contract?

Something bargained for and received by a promisor from a promisee. Common types of consideration include real or personal property, a return promise, some act, or a forbearance. Consideration or a valid substitute is required to have a contract. business law.

Who can give consideration in India for an agreement?

According to section 2(d) of the Indian Contract Act “when at the desire of the promisor, promisee or any other person has done or abstained from doing or does or abstains from doing or promises to do or to abstain from doing something, such act or abstinence, or promise is called a consideration for the promise.”

What are the 3 requirements of consideration?

There are three requirements of consideration: 1) Each party must make a promise, perform an act, or forbear (refrain from doing something). 2) Each party’s promise, act, or forbearance must be in exchange for a return promise, act, or forbearance by the other party.

What is consideration and types of consideration?

Consideration is classified as one of two types: executed: when the promise has been performed within the meaning of the contract, or. executory: when the promise has not been performed.

What are the 4 types of consideration?

The various types of consideration are (1) a promise, (2) an act other than a promise, (3) forbearance, (4) a change in a legal relation of the parties, (5) money, or (6) other property.

What are the legal rules of consideration?

Consideration Meaning in Law

  • Consideration has to move as per the desire of the promisor.
  • Consideration may move from the promise to another person.
  • Consideration might be in the past, present, or future.
  • Consideration does not need to be adequate.
  • Consideration must be real and not illusory.

What is an agreement without consideration?

Agreement without consideration, void, unless it is in writing and registered, or is a promise to compensate for something done, or is a promise to pay a debt barred by limitation law.

What are the six types of consideration?

There are six kinds of consideration in contract law.

  • Executory (Future) Consideration.
  • Executed (Present) Consideration.
  • Past Consideration.
  • Conditional Consideration.
  • Unreal Consideration.
  • Illegal Consideration.

What are the 6 types of consideration?

What are the 3 types of consideration?

Kinds of Consideration

  • Executory Consideration or Future Consideration,
  • Executed Consideration or Present Consideration, or.
  • Past Consideration.