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] something - 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 agreement. 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 Services. It is the price for which the promise of the other is bought. 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, lawful 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.
STRANGERS 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.
STRANGERS 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.
Result: Stranger to Contract cannot sue on a Contract. Stranger to Consideration may sue on the Contract.