Consideration

Q. Define consideration, when consideration or object of an agreement unlawful. (2003)

1. ntroduction!
Consideration is used in the sense of "uid #ro "uo (something in return). n other words consideration is a
reward acce#ted or gi$en in return for the #romise. % #romise without consideration is no contract and is not
enforceable. Consideration should be good and $aluable.
2. Definition of consideration!
Contract act sec 2. Defines consideration in the following words. &'hen at the desire of #romise the #romise or
an( other #erson has done or abstained from doing, or does or abstain from doing, or does or abstains from
doing or #romises to do or abstain from doing something such act, or abstinence or #romise is called the
consideration for the #romise.)
%ccording to *olloc+
&Consideration is the #rice for which #romise of another is bought.)
%ccording to Da$id
&Consideration is some benefit recei$ed b( #art( who gi$es a #romise or #ertormance of an act.)
3. llustration!
,abia agree to sell her car to %li for ,s. 3 -ac+. .ow %li #romise to #a( such amount is consideration for
,abia/s #romise.
0. 1(#es of consideration!
2ollowing are three t(#es of consideration!
(a) *ast consideration
'hen an act has alread( been done and subse"uentl( a #romise is made to #a( remuneration for that act, the
consideration for the #romise is #ast .
(b) *resent consideration
f the consideration is gi$en at the same time when the contract is made it is called #resent consideration.
( c) 2uture consideration
f the consideration is gi$en if a later date after ma+ing the contract it will be $called future consideration.
3. 4ssentials of consideration!
(i) Consideration should be gi$en b( the #romise.
(ii) t should be lawful.
(iii) t should be gi$en at the desire of the #romiors.
(i$) t ma( be #ast, #resent or future.
($) t ma( consist of an act or abstinence.
($i) Consideration must be real.
($ii) t need not be ade"uate.
5. 46ce#tions!
t is a fact that without consideration an agreement is $oid but it has following e6ce#tion.
() -o$e and affection!
f an agreement is made between #arties for natural lo$e and affection consideration is not necessar(.
() Contract of agenc(!
.o consideration is re"uired to create agenc(.
() 7oluntar( ser$ices!
n case of com#ensation for $oluntar( ser$ices there is no re"uirement of consideration.
(7) 1ime barred debt!
'here an agreement is a #romise made in writing and signed b( the #erson to be charged to #a( a debt of
which the creditor might ha$e enforced #a(ment but for law for the limitation of suits.
(7) Contract under seal!
8nder the 4nglish law a contract made in form of a dead under seal is $alid e$en though it is made without
consideration.
(7) 46tention in time limit!
1here is no need of an( consideration if agreement is made to e6tend time for enforcement of the contract.
9. 8n:lawful consideration!
%ccording to sec. 10 of the contract act.
&%n agreement is a contract enforceable onl( if it is made for a lawful consideration and which a lawful
object.)
;. Causes of unlawful consideration!
%ccording to sec 23. 1he consideration or object of an agreement is unlawful in the following cases.
() *rohibited b( law!
f the object of a agreement is #rohibited b( law agreement will be $oid.
() 4lement of fraud!
f there is element of fraud in the object of agreement, the consideration will be unlawful.
() mmoral!
f case of immoral, the consideration will be unlawful.
($) against #ublic #olic(!
f the object of consideration of an agreement as o##osed to #ublic #olic(, the consideration will be
unlawful.
($) njur( to other #erson or #ro#ert(!
f the object or consideration of agreement is to cause an injur( to the #erson or #ro#ert( of another is illegal
and $oid.
<. Conclusion!
1o conclusion it can be said, that consideration is one of the essential element of $alid contract. %n agreement
without consideration is $oid. =owe$er sec 23 contains some e6ce#tions when the agreements e$en though the(
are made without consideration are enforceable and $alid.