NATURE OF CONSIDERATION FOR CONTRACTS CONSISTING OF NUMBER OF TERMS

This Article is written by Riya Tayal. (pursuing BBA LLB from FIMT GGSIPU, Delhi)

Table of Contents

INTRODUCTION

Consideration means something in return, i.e.quid ace quo the fundamental backbones of a real agreement. In like way speech, consideration implies something paid to someone as a compromise for something other than what’s expected which, in legitimate expressing can be seen as the expense of instalment which should be paid by the promisee to the promisor for doing or doing without doing such an activity.

The law loosens up enforceability just to those contracts or arrangements that are made for some thought. The shortage of thought makes no real responsibility as the contracts or arrangements in those cases end up being essentially unjustifiable or unenforceable by law.

In the setup instance of Currie v. Misa, the court characterized consideration as, A right, interest, benefit, disadvantage, loss, or responsibility. Its primary trademark is that the promisor should give a guarantee of something that is of worth, and the promisee should give something of significant worth in return. In basic terms, anything of significant worth that is guaranteed by one party to one more can be seen as a consideration.

Definition under Indian Contract Act, 1872

Section 2(d) of the Indian Contract Act, 1872 characterizes consideration as, When at the craving of the promisor, the promisee, or some other individual has done or swore off doing or does or swears off doing, or promises to-do or keeps away from accomplishing something, such act or restraint or guarantee is known as a consideration for the promise.

As per the definition given over, the return guaranteed for the execution of an arrangement is known as consideration. Without consideration, there can’t be an agreement or contract aside from in case it is explicitly indicated in the provisions of the consent to that degree. There is in every case some advantage or misfortune to both of the gatherings to such an agreement or understanding due to such consideration. It isn’t obligatory that the promisor himself should be benefitted by the thought. It is adequate if the demonstration or abstinence building up such consideration was done in accordance with the promisor as per their longing.

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Essentials of Valid Consideration

At the desire of the promisor:

To comprise legitimate consideration it should be moved at the craving of the promisor. An act done at the craving of the outsider doesn’t establish a legitimate consideration. In Durga Prasad v. Baldeo, on the request for the town gatherer, an individual fabricated specific shops in the market at his own cost. The shops came to be involved by the respondents who, with regards to the offended party having consumed cash in the development, promised to pay him a commission on articles sold through their office in the marketplace. The offended parties activity to recuperate the commission was dismissed. The main ground for making the guarantee is the cost brought about by the offended party in setting up the market however unmistakably anything done in the manner was not at the craving of the respondents to establish consideration. The act was the outcome not of the promise but rather of the gatherer’s request.

Promisee or some other individual:

The second most significant component as indicated by the consideration definition given in Section 2(d) is that it might give to Promisor from Promisee or some other third individual. On account of Dutton v. Poole, an individual had a daughter to marry and his child guaranteed him that, consequently he would pay 1000 pounds to his sister if his father did not sell a wood. The father appropriately abstained yet the son(defendant) didn’t pay. It was held that because of a tie of blood between them the sister could sue, on the ground that the consideration and promise to the father might well have stretched out to her.

In Chinnaya v. Ramayya, a promise by a daughter to her mother’s sister to pay maintenance in light of the mother(an old woman) making an endowment of specific landed property to her, was looked to be implemented by the sister of the mother. The choice was in favour as this was a completely legitimate consideration.

VOID AGREEMENT UNDER SECTION 24 to 30 OF INDIAN CONTRACT ACT, 1872

Consideration might be past, present, future:

In Consideration definition the words have done or abstained from doing, or does or abstain from doing, or promises to do or to abstain from doing; demonstrates that the thought might be either something done or not done before, or done or not done in the present or promised to be done or not done later on. Thus, consideration might be passed, present and future acts.

Past-When present promise consideration is given before the date of the promise then, at that point, it is called past consideration. A previous act done at solicitation will be acceptable consideration for an ensuing promise.

Present-When consideration moves at the same time with the promise, it is known as present or executed consideration. Example- Tina purchases an article from a shop and quickly pays for something similar. In this, the consideration moving from Tina is available or executed consideration.

Future-When consideration for a promise moves after the contract is framed, it is called as future or executory consideration. Example- A has promised to sell and B has promised to pay. Until the products are really conveyed to B under the agreement, the Consideration is executor.

Consideration must be lawful:

A consideration that is illegal or public arrangement isn’t valid i.e., it will become void and unenforceable. Subsequently, it is important that consideration ought to be a legitimate one. A husband offered an award to any individual who might save his wife in any condition from a consuming structure and a firefighter was permitted to get it as he achieved the salvage of her dead body and it resembled an extraordinary danger to his wellbeing and life, the court held that as a firefighter of the city he was not lawfully bound to hazard his life in that rescue.

Consideration must be real:

Consideration should not be illusionary, it ought to be really one i.e., it should be genuine and conceivable. It should have some worth according to the law. It need not be satisfactory to the guarantee for the legitimacy of an arrangement.

CONCLUSION

Consideration legitimately ties a contract and it likewise shield both the gatherings from claims and misjudging. It isn’t required that thought nature ought to consistently be tangible, even an intangible consideration is similarly legitimate consideration. Contract considered numerous fundamental components and legitimate thought is essential part or element of valid contract.

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