Consideration & its Elements Consideration:
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 abstain
from doing something, such act or abstinence or promise is called the
consideration for promise.
Elements of Consideration:
- At the desire of the promisor:
According to Section 2(d) of Indian Contract Act,1872 Consideration must be
at the desire of the promisor. If it is given at the desire of any other
person it is not valid.
Case: Durga Prasad v. Baldeo In this case some shops were built at the order of Collector. The defendant
has agreed to pay certain sum of money as commission. When the defendant
refused to pay the plaintiff brought the suit. Since the act was done not at
the desire of the defendant, it was not held to be a valid consideration.
- Promisee or any other person:
Consideration may be given by promisee or any person on his behalf.
Case: Chinnayya v. Ramayya In this case a mother gifted her property to her daughter with the condition
that the daughter would give 650 rupees as annuity to her maternal uncle.
The daughter denied to pay annuity. Her argument was that there was no
consideration by the maternal uncle. It was held that the property donated
by mother was sufficient consideration.
- Present , Past & Future: Consideration may be in present, past or
- Act or abstinence: Act or abstinence both constitute consideration.
- Something: Something must be of money value.
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