Quid pro quo

The phrase quid pro

quo is a Latin term that
is usually translated as
something for
something.
Quid pro quo is a
general term;
consideration is a
specific, legal term.

LEGAL RULES TO CONSIDERATION

 It must move at the desire of the promisor : The act or the abstinence must
have been done at the desire of the promisor. Any act or the abstinence
performed at the desire of the third party cannot be consideration.

Durga Prasad Vs. Baldeo. (1880) 3 All. 221

B, spent some money on the improvement of a market at the desire of the Collector of the
District. In consideration of this D who was using the market promised to pay some money
to B. Held the agreement was void being without consideration.

It must move from the promisee or any other person : As long as

there is a consideration for a promise, it is immaterial who has given it.
It may move from the promisee or if the promisor has no objection,
from any other person.

Chinnaya Vs Ramayya, (1882) 4 Mad.137

A, an old lady, by a deed of gift, made over certain property to her daughter R, with a
direction that the daughter should pay an annuity to As sister (Rs maternal aunt) as has been
done by A so far. R, the daughter, executed a writing in favour of her maternal aunt C
agreeing to pay the annuity. Afterwards she declined to fulfil her promise saying that no
consideration had moved from her maternal aunt i.e. the promisee. Held, C was entitled to

It may be an act, abstinence, forbearance or a return promise:

Accordingly, the ff. are good considerations for a contract:
(1) Forbearance to sue refers to a scenario where a party has a right of action against the

other party or a third person and he refrains from bringing action in consideration of promise
by the other or third party. Forbearance to sue is valuable consideration provided such action
does not give rise to an illegal contract.
In [Devi Radha Rani Vs Ram Dass. A.I.R. (1941) Pat.282]. X the wife of Y, withdrew her suit against Y in
return for his promise to pay her maintenance. It was held that it was good consideration.

(2) Compromise over Disputed Claims: Provided compromise should be

reasonable and bonafide i.e person claiming should honestly believe it is a valid
claim.

(3) Composition with creditors

It may be past, present or future :

Past consideration : When the consideration for a present promise was given before the date of
promise, it is said to be past consideration.
Illustration: X renders service to Y during months of agricultural harvesting. Y promises to pay Rs 1000
to X for his past services when the new crop is being sown in the fields. The past services of X
constitute valid consideration.
Present or executed consideration : When the consideration for a promise is given simultaneously
with the promise it is called present consideration.
Future or executory consideration : A future consideration is a promise to do or give something in
return in future for the promise then made.
Illustration : X promises to deliver 10 bags of rice to Y after 10 days and Y promises to pay for the rice
10 days after the delivery by X.
*Even is the promise given for a promise is dependent on a condition, it serves as valid consideration.
Illustration: X promises to landscape the garden of Y and Y agrees to pay X as long as the landscape
plans are approved by Z, a third party. Ys promise is valid consideration for Xs promise.

It need not be adequate: Law only requires presence of consideration and

not the adequacy to it. It is for the parties to consider what is adequate
consideration for them. Eg: Selling a car just for Rs. 5000/* Explanation 2 to Sec. 25.: Court looks into adequacy of consideration only
in circumstances to determine the question whether the consent of the
promisor was freely given.

It must be real, competent and possess value in eyes of law.. It must not be
illusory.
Consideration should not be:
(1)Physically impossible : Eg: making a dead person alive.
(2) Legally Impossible : Eg: A agrees to pay Rs. 5000 to B, who agrees to get
A, a driving licence without a trial drive.
(3) Uncertain consideration: Eg: X agrees to pay Y an adequate amount for a
certain workadequate & certain are uncertain elements.
(4) Illusory consideration: a contract into which both parties enter, but one or
both of the parties can choose not to perform their contractual obligations .
Eg: A will buy all the goods it needs from B, but B will sell as much goods as
he wants to A

It must be something other than the Promisors existing obligation.

Performance of an existing obligation or legal duty is no consideration for a promise.

Illustration: X receives summons to appear before court of law as a witness for Y. He is promised
certain amount of money by Y for appearing in Court. The promise to pay X is void because of lack of
consideration for Y as X was already under a legal duty to appear as a witness before the Court. (Collins
vs. Godefroa)

The consideration must not be unlawful or opposed to public policy.

Illustration: X offers Rs 1000 to Y for beating up Z, his enemy. Y beats up Z but X
refuses to pay him. Y cannot recover the money promised to him because the
consideration is unlawful.

Section 24. Agreement void, if considerations and objects unlawful in part.-If any part of
a single consideration for one or more objects, or any one or any part of any one of
several considerations for a single object, is unlawful, the agreement is void.

Contract of Bailment
Contribution to Charity

In order that a promise to pay for the past voluntary services be binding,
the following essentials must exist:
a) the act must be done voluntarily.
b) for the promisor or it must be something which was the legal
obligation of the promisor.
c) the promisor must be in the existence at the time when the act was
done.
d) the promisor must agree now to compensate the promisee.

Contract of Bailment
No Consideration is required to effect Bailment
(Section 148)

Contribution to Charity

If A admits to C that he had received money from B for the payment to C , he

constitutes himself as the agent of C who can successfully recover the amount
from A.

Doctrine of Promissory Estoppel

The person making the representation or promise becomes bound by
the same, if another person has acted on the faith of such promise or
representation. The promisee can ask for enforcing the promise even
if there is no consideration.
Example : Mr. X establishes an industrial unit on the faith of tax
concession announced by a state govt. for a particular specified period. The
state govt. is bound by the estoppel and cannot withdraw tax concession
earlier than promised by it.