Later on, the daughter refused to pay on the ground that the uncle did not give any consideration to her. Basic Rule: Contract = Promise + Consideration 1. ontract: ^A promise or set of promises for the breach of which the law gives a remedy _ (R2K §1) a) Consideration (performance or a return promise) must be bargained for (R2K §71.1) (1) Performance = an act other than a promise, a forbearance or the creation modification or destruction of a legal relation (R2K §71.2) ⇒Consideration must be made at time the contract is made, never before ⇒ Past consideration is where one party provides a promise or acts before the other party’s promise is given See, for example, Roscorla v Thomas (1842) ⇒ Exception to the 'past consideration' rule: Lord Scarman said in Pao On v Lau Yiu Long [1980] that “an act done before the giving of a promise to make a payment or to confer … Consideration cannot be something that has happened in the past. Consideration is a common law doctrine comprised of numerous rules that help parties prove/disprove the existence of an alleged contract.¹ Parties … 5 to A as reward for the service rendered. Lack of consideration – for a promise to be enforced by the courts there must be consideration. Hence the law will not object to the inadequacy of consideration. Therefore, in many cases it has been remarked well, “the doctrine of consideration is a mere technicality irreconcilable either with business expediency or common sense.”. 100 extra to a doctor for performing a successful operation. Example: A promises to pay B Rs. Performance & security by Cloudflare, Please complete the security check to access. Consideration must not be something which the promisor is legally bound to do: A promise to do something which a person is legally bound to do is not a good consideration. Main exception to this rule = promises made under seal. Under English Law, however, consideration must move from the promise and not from any other person. The required elements of consideration include: 1. • Basic rule: – A promise will not be enforceable unless it is supported by consideration. Later on, B refused to pay the commission. A promised to pay Rs. According to Salmond A promise without consideration is a gift; one made with consideration is a bargain. Consideration in contract law is simply the exchange of one thing of value for another. Is B liable? Without consideration, a contract cannot be enforced or is otherwise avoidable. The consideration: Is essential to every simple contract, Can be present and future but not past. What are the legal rules regarding a valid offer? 4. [Chinayya v. There must be something rather than nothing. 3. Consideration is the foundation on which any contract is built. Consideration can be offered by the promisee or a third-party only at the request or desire of the promisor. Immoral consideration means an act against positive morality as recognized by law. Example: A promises to B to guarantee payment of the price of goods which B sells on credit to C. here selling of goods by B to C is Consideration for A’s pro… This means there must be something that is worth bargaining over to both the parties. Consideration may be past, present or future: The words, “has done”, “does” or “promises to do” indicate respectively that the consideration may be past, present or future. Consideration has been variously defined. As with every part of a legal contract, there are rules that you need to follow to make sure that the contract is legally binding. • Here, the consideration is present consideration. Content Guidelines Following are the rules as to consideration: Every contract must be supported by consideration: No valid contract can arise without consideration. PreserveArticles.com: Preserving Your Articles for Eternity, Difference between a Stranger to Consideration and A Stranger To Contract, Rules for performance of reciprocal promises. Rules regarding Consideration. Exceptions To The Rule As To Past Consideration (1) It is generally declared a past consideration will support a subsequent promise if the consideration was given at the request of the promisor. Adequacy of consideration – the court seldom considers adequacy of consideration. A promised to pay Rs. It is legally impossible and therefore void. It cannot be vague, uncertain, or impossible. Rules Regarding Consideration. Payment of one hundred rupees extra in this case is not a good consideration as it was a promise to do something which the lawyer was legally bound to do. As per Section 10 and Section 25 of the Indian Contract Act, 1872, consideration is essential in a valid contract. According to Section 2(d) of the Indian Contract Act, 1872, the follows features are essential for a valid consideration: (i) Consideration must move at the desire of the promisor. Consideration must move at the desire of the promisor: The first important rule of consideration is that the act or forbearance must be done at the desire or request of the promisor. Occupants of shops promised to pay D a commission on articles sold through their shops. 5. Legal Rules Regarding Consideration Consideration must move at the desire of the promissor: an act forming consideration that must be done at the desire or request of the promisor. It is not certain as to what amount is payable. TOS Following are the rules as to consideration: Every contract must be supported by consideration: No valid contract can arise without consideration. A’s consent to the agreement was given freely. The law will not enforce a promise only if it is without consideration. A lets out his house to a prostitute. In Indian Law, consideration must move at … ‘A’s Scooter is damaged by B negligently driving his car. Consideration must move at the desire of the promisor: The first important rule of consideration is … Cloudflare Ray ID: 6120f6705f9cd84d If the claim turns out to be frivolous or unfounded, the consideration will fail and the debtor would be entitled to refund of the amount paid by him. 1,000 if he can get him a smuggled Television set. The legal rules of consideration state that consideration has to be certain, definitive, and competent. Must promise more than a current or existing obligation. Your IP: 190.210.186.170 D constructed a market at the instance of District collector. To create a legally enforceable contract, consideration must be present. If one or more of these elements are missing, the contract lacks the necessary requirements, it could potentially be deemed invalid by the court. For example, A agrees to sell his watch worth Rs. Can one say that an inadequate consideration is an exception to the rule of consideration? 25 provides that any gift actually made is valid. Legal Rules Regarding Consideration Consideration must move at the desire of the promissor: an act forming consideration that must be done at the desire or request of the promisor. A. The law would enforce only those promises that are made as part of the consideration. Our mission is to liberate knowledge. It is not necessary that there must be full return for the promise. Thus forbearance to sue a debtor can be a good consideration. All the articles you read in this site are contributed by users like you, with a single vision to liberate knowledge. In other words, consideration may be given by the promisee or any other person on his (promisee’s) behalf. Having a contract that clearly states this information helps a court to determine where the failure occurred, who is at fault, and what penalty to award. 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