Consideration

Defination: Consideration is the price for which the promise of the other is bought, and the promise thus given for value is enforceable. Upon analysis of the above defination, consideration may be : An act An abstinence A return promise Need for consideration

Legal Rules As To Consideration

It must move at the desire of the promiser It may move from the promisee or any other person It may be an act , abstinence or forbearance or a return It may be past ,present or future It need not be adequate It must be real and not illusory It must be something which the promiser is not already bound to do It must not be illegal, immoral or opposed to public policy

Consideration (contd.)
Stranger to contract Rule of law states that only parties to a contract may sue and be sued on that contract. This is known as privity of contract. Exception A trust or charge Marriage settlement, partition or other family arrangement Acknowledgement or estoppel Assignment of a contract Contracts entered into through an agent Covenants running with the land

A Contract Without Consideration is Void- Exceptions

In following cases, the agreements are enforceable even though they are made without consideration. Love and affection Compensation for voluntary services Promise to pay a time-barred debt Completed gift Agency Charitable subscription