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Definition of Consideration

The word Consideration is defined under [Sec-2(d)]

When, at the desire of the Promisor
the promisee or any other person on
his / her behalf
- has done or abstained from doing [Past] or
- does or abstains from doing [Present] or
- promises to do or abstain from doing [Future]
- such - act or
- abstinence or
- promise
is called a - consideration for the promise.
Analysis of the Definition of Consideration.
Consideration must move
- at the desire of the Promisor;
- from the promisee, or
any other person on his/her behalf.
It may be - past,
- present or
- future.
It may consist of an
- act,
- abstinence or
- promise.

Consideration is an important element of an
Note: Agreement made with out consideration is
void [Sec-25].
It is quid pro quo - which means what for what. It
implies exchange of - something in return - which has
some material value.
It may be Money,
Goods or
It is the price for which the promise of the other is
A valuable Consideration in the sense of Law
may consist
- some right, interest, profit or benefit
accruing to one, or
- some forbearance, detriment, loss or
responsibility - given, suffered, or undertaken
by the other.
Consideration need not be adequate.
It must be real,
not illusory; nor sham.

Exceptions to the Rule Under Sec- 25 .
Some Agreements are valid even though they are
not supported by Consideration. They are:
1. made on account of natural love and affection;
2. Containing a promise to compensate another for
past voluntary services;
3. Containing a promise to pay a time-barred
- debt;
4. No Consideration for a - completed gift;
5. No consideration - for creating an agency;
6. No consideration is required for a Surety;
7. Collateral Contract does not form part of
Consideration promised, but it is valid
Contingent Contract.

A stranger may be
a stranger to the contract, or
a stranger to the Consideration.
1. Stranger to Contract: A agrees with B for a sum
of Rs.1 lac, to do some service to C. C is
stranger to the Contract. The parties to the
contract are only A and B.
A person who is not a party to the contract is
the stranger. Such a party neither makes nor
accepts an offer. However, his name was
referred in the contract.

2. Stranger to Consideration: A promises to give Rs. 1
Lac to C - in consideration of B doing some services
for A. The parties to the contract are only A and B.
C is stranger to the Consideration. Consideration is
furnished by B on behalf of C.

C has not furnished any consideration for the
promise made to him by A. The consideration on
behalf of Promisee, i.e. C, has been supplied by a
third party B.

Stranger to Contract cannot sue on a Contract.
Stranger to Consideration may sue on the Contract.