In this way, is Past consideration valid?
Generally, past consideration is not a valid consideration and has no legal value. Past consideration is consideration that has already flowed from the promisee to the promisor. That is, the promisee's act or forbearance predates the promisor's promise.
Furthermore, what is consideration under Indian Contract Act 1872? Consideration as per Indian Contract Act, 1872 “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 is called a consideration for the promisee.”
Correspondingly, what are the legal rules as to valid consideration?
- Consideration must move at the desire of the promisor:
- Consideration may move from the promisee or any other person:
- Consideration may be past, present or future:
- Consideration must be real and not illusory:
- Consideration must not be something which the promisor is legally bound to do:
What are the exceptions to consideration?
Exceptions to the ‘No Consideration No Contract' Rule
- Natural Love and Affection.
- Past Voluntary Services.
- Promise to pay a Time-Barred Debt.
- Creation of an Agency.
What are the types of consideration?
Something bargained for and received by a promisor from a promisee. Common types of consideration include real or personal property, a return promise, some act, or a forbearance. Consideration or a valid substitute is required to have a contract.
What are the three possible forms of consideration?
The three possible forms of consideration are an act, a forbearance, and a ________ to another party. An output contract results when buyers: agree to purchase all of a particular producer's production.
What are the rules for consideration?
Legal Rules Regarding Consideration
- Example 1 – Doing something.
- Example 2 – Not doing something.
- (i) Consideration must move at the desire of the promisor.
- (ii) Consideration may move from the promisee to any other person.
- (iii) It can be in the past, present or future.
- (iv) It must have value in the eyes of the law.
What is the principle of consideration?
Consideration is simply something of value received by a promisor from a promisee. It can take the form of a right, interest or benefit accruing to one party, or some forbearance, detriment, loss, or responsibility, given, suffered or undertaken by the other .
What is the past consideration rule?
Past consideration is defined as an act done before a contract is made. It is consideration that is already given or some act that is already performed and therefore cannot be induced by the other party's thing, act, or promise in exchange.
What are the elements of consideration?
Elements of consideration
First, there must be a bargain regarding terms of an exchange. Second, there must be a mutual exchange. In other words, both parties must get something out of the contract. Third, the exchange must be something of value.
What do you mean by consideration?
consideration. Something with monetary value, voluntarily exchanged for an act, benefit, forbearance, interest, promise, right, or goods or services. In banking, the loan-amount is a consideration, in exchange for the borrower's promise to repay the principal and to pay interest and other charges.
Is a Promise consideration?
Consideration. In a unilateral contract, an agreement by which one party makes a promise in exchange for the other's performance, the performance is consideration for the promise, while the promise is consideration for the performance. Consideration must have a value that can be objectively determined.
What makes a consideration valid?
What Constitutes Valid Consideration. Consideration should contain payment of money, some act, abstinence or promise. For a consideration to be valid there must be a promise from both sides. This means that there must be a promise by one party against the promise of the other party.
What are the essential elements of a valid consideration?
Essentials of Valid Consideration
- It must move at the desire of the promisor:
- It may move from the Promisee or any other person:
- It may be past, present or future:
- It need not be Adequate:
- It must be Real:
What is consideration law?
n. 1) payment or money. 2) a vital element in the law of contracts, consideration is a benefit which must be bargained for between the parties, and is the essential reason for a party entering into a contract. In a contract, one consideration (thing given) is exchanged for another consideration.
What is offer law?
In contract law, an offer is a promise in exchange for performance by another party. An offer can be revoked or terminated under certain conditions. There are also times when an offer can be negotiated to create a counter-offer.
What is consideration example?
The definition of consideration is careful thought or attention or compassionate regard for someone or something. An example of consideration is someone deciding between two options for dinner. An example of consideration is someone bringing a friend dinner who just had a baby.
In what cases a contract without consideration is not void?
Contracts Without Consideration
Sometimes a contract is declared void by the court because it lacks consideration. This typically occurs when: The offered consideration is something the party in question is already legally obligated to do. The consideration offered is a gift with nothing expected in return.
What is valid contract?
A valid contract is an agreement, which is binding and enforceable. In a valid contract, all the parties are legally bound to perform the contract. Section 10 of the contract act enumerates the points of essentials for valid contracts.
What is the function of consideration?
Consideration, in contract law, an inducement given to enter into a contract that is sufficient to render the promise enforceable in the courts. The technical requirement is either a detriment incurred by the person making the promise or a benefit received by the other person.
What is Section 10 of Indian Contract Act?
Section 10 of the Indian Contract Act says, “all agreements are contracts if they are made by the free consent of the parties competent to contract, for a lawful consideration and with a lawful object and are not expressly declared to be void”.
What is executory consideration?
Executory consideration is a consideration for a promise or an act, which consideration has not yet been performed and which the party who is to perform is either bound by contract to perform or not.
What is void contract example?
A void contract cannot be enforced by law. An agreement to carry out an illegal act is an example of a void agreement. For example, a contract between drug dealers and buyers is a void contract simply because the terms of the contract are illegal. In such a case, neither party can go to court to enforce the contract.