Section 2(d) of Indian Contract Act defines consideration as follows-
- at the desire of the promisor
- promisee/any other person
- has done/abstained from doing something (or)
- does/abstains from doing something (or)
- promises to do/abstain from doing something
such act/abstinence/promise is called consideration
Section 25 defines exceptions to rule an agreement without consideration is
void-(a) Any contract entered
(b) In Subscription or Donation for charitable purpose-
- out of love & affection
- voluntarily services
- time barred debts
consideration is not necessary
For every promise consideration is neccessary but the question arises whether
is necessary for charitable purposes.
Abdul Aziz v. Masum Ali
1914 ALL 22-
In this case defendant promised to pay Rs.500/- for the repairs of Mosque and
did not pay.
But the process of repair was not started.In an action by the plaintiff, it was
held that promise
by the defendant was not enforceable (since construction was not yet started).
In another case Kedarnath v. Gorie Mohammedh I.L.R
This was held enforceable on the ground that the construction was already
started relying upon
the promise of the defendant.(c) In case of performance of adjusting duty-
Chintaman v/s. Kaluraju
Here an advocated cannot ask his client for extra fees for the better
performance of duty. It
is his statutory duty and he is bound to do that. He cannot ask for extra
consideration. No consideration
is required in case of performance of adjusting duty.
(d) In case of Completed Gift-
Consideration is not neccessary
if gift was completed.
(e) Contract of agency
(f) Gratuitous Bailment
(g) Contract of Guarantee