Indian contract act, 1872
ABOUT ME MYSELF PRIYAL AGRAWAL CS EXECUTIVE &BCOM 2ND YEAR STUDENT CS FOUNDATION (AIR 22) HOBBIES: TO READ NOVELS,EXPLORING NEW THINGS FOLLOW ME ON UNACADEMY https:// unacademy.com/user/PriyalAgrawal
WHAT IS CONSIDERATION? . Consideration is the price agreed to be paid by the promisee for the obligation of the promisor . Section 2(d) de nes consideration as follows: "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 an act or abstinence or promise is called consideration for the promise"
Analysis of Definition of Consideration (1) Consideration is an act-doing something. Example- Ajay promises Bhuvan to guarantee payment of price of the goods which Bhuvan wanted to sell on one month credit to Chaitanya. Here selling of goods on credit by Bhuvan to Chaitanya is consideration for A's promise. (2) Consideration is abstinence-abstain from doing something. . Example- Abhishek promises Bharti not to le a suit against him if he (Bharti) would pay him (Abhishek) Rs. 1,00,000. Here abstinence on the part of Abhishek would constitute consideration against Bharti's payment of Rs. 1,00,000 in favor of Abhishek. .(3) Consideration must be at the desire of the promisor. 4) Consideration may move from promisee or any other person
.(5) Consideration may be past, present or future. Thus from above it can be concluded that: Consideration Promise / Performance that parties exchange with each other.
LEGAL RULES REGARDING CONSIDERATION (i) Consideration must move at the desire of the promisor: Consideration must be offered by the promisee or the third party at the desire or request of the promisor. Contract of marriage in consideration of promise of settlement is enforceable. An act done at the desire of a third party is not a consideration. Example: R saves Ss goods from re without being asked to do so. R cannot demand any reward for his services, as the act being done voluntary
(i) Consideration may move from promisee or any other person: In India, consideration may proceed from the promisee or any other person who is not a party to the contract. According to the definition, when at the desire of the promisor, the promisee or any other person does something such an act is consideration. In other words, there can be a stranger to a consideration but not stranger to a contract.
Example: An old lady made a gift of her property to her daughter with a direction to pay a certain sum of money to the maternal uncle by way of annuity. On the same day, the daughter executed a writing in favour of the brother agreeing to pay annuity. The daughter did not, however, pay the annuity and the uncle sued to recover it. It was held that there was sufficient consideration for the uncle to recover the money from the daughter. [Chinnayya vs. Ramayya (1882)]
Thanks! Any questions? Ask me in the comment sections below! Rate RevieW Recomm
CS Student, AIR 21 in CS foundation,love Teaching, reading, travelling, novels, fashion freak, watch the lessons to knw more