Friday, February 7, 2014

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ESSENTIALS OF VALID CONSIDERATION

 ESSENTIALS OF VALID CONSIDERATION
1. Consideration must move at desire of the promiser. An act or abstinence must have been done at the desire of the promisor only. Any act performed at the desire of the third party cannot be valid consideration.


2. From the promisor or any other person. To constitute a valid consideration their must be some consideration, it immaterial who furnished it. Consideration can be furnished by contract but stranger to the consideration can sue, because he is party to that contract, though consideration has been given by some third person.


3. Consideration may be past, present or future.
 (a)  Past Consideration:-A consideration for the act done in past is a past consideration. Past consideration valid in Indian Contract Act, but it is no consideration in English Law.

 (b) Present Consideration:-When both the parties are ready to move consideration at the same time, it is a present consideration.


 (c) Future Consideration:-When a party promises to or abstain from doing something in future, it is a future consideration.


4. Consideration need not to be adequate. Law only requires the presence of consideration in a valid contract, it adequacy is not required in the Act.


5. consideration must be real. Definition of consideration clearly states "Something in return" is consideration which must be of some value in the eyes of law, though need not be adequate. It should not be uncertain, illusory or impossible.


6. Consideration must be lawful. In valid contract it is necessary that the consideration should be lawful, otherwise it will become void and unenforceable.

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