INTRODUCTION

It is a technical term in the sense of QUID PRO QUO i.e., Something in Return An agreement made without consideration is RUNDUM PACTUM ( nude contract / void) Definition : Pollock Consideration is the price for which the promise of the other is bought and the promise thus given for value is enforceable

Definition According to Indian Contract Act :

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 from doing something, such act or abstinence or promise is called Consideration for the Promise

Analysis of Definition :

Consideration is
I. II. An Act, i.e., Doing of Something An abstinence or forbearance Here Consideration is in Negative Form.

III. A return Promise

Essentials of a Valid Consideration :

Consideration must move at the desire of the Promisor If it is done at the instance of a third party or without the desire of the promisor, it will not be a good consideration

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It may move from the Promisee or any other person Stranger to a Contract : This means as long as there is consideration for a promise it is immaterial who has furnished it But the stranger to consideration will be able to sue only is he is a party to the contract

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It may be Past, Present or Future
Past consideration When consideration by a party for a present promise was given in the past i.e. before the date of the promise, it is said to be past consideration Present consideration When consideration is given simultaneously with promise, at the time of the promise, it is said to be present consideration Future consideration When consideration from one party to the other is to pass subsequently to the

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It may be an act of doing or abstaining from doing something or it may be an act of forbearance or abstinence

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It need not be adequate Something in return need not necessarily equal to value of something given

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It must be Real and not Illusory It must be real, competent and of some value n the eyes of the law. There is no real consideration in the following cases: Physical impossibility Legal impossibility Uncertain consideration Illusory consideration

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Performance of existing obligation is no consideration:
It must be something which the promisor is not already bound to do

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It must not be unlawful, immoral or opposed to public policy.

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Forbearance to sue is a good consideration : Forbearance to sue or a promise to forbear, where requested will support a promise by another

 Agreement made on account of natural love and affection Promise to compensate for past voluntary services Promise to pay a time-barred debt Completed gift An agreement to create an agency Charitable subscription

Exceptions to the rule An Agreement without Consideration is Void

Types of consideration :
Executed Consideration Executory Consideration Past Consideration Unlawful Consideration Unreal Consideration

Unlawful Consideration :
It is forbidden law Is of such a nature that, if permitted, it would defeat the provision of any law Is fraudulent Involves or implies injury to the person or property of another The court regards it as immoral or opposed to public police