Contract Consideration

872 Words2 Pages

Of all the topics as discussed in the class, the topic consideration has greatly drawn my interest and I got eager to find the appropriate meaning of Consideration in accordance to the Indian Contact Act (1872). The meaning of the term consideration is defined in Section 2 (d) of the Act is somewhat different from how the word ‘Consideration’ is understood in ordinary parlance. In this response paper, I seek to explore the specific manner in which the Contract Act defines ‘consideration’ and how such a definition fits in with the general scheme of the Contract Act, with the hope of responding to some of the difficulties the definition of consideration raises for contract law.
In my opinion, Consideration is the essential element for the formation of contract. As we know that a contract is based on the promise and for there must be two parties to the contract a promisor and a promisee and when both the parties gain something from one and another then the gain or the benefit received by the parties is called consideration. It should be something which has some value in the eyes of law and it is not one sided as there are two parties of the contract so the consideration comes from both the sides and in case, if it's one sided that will be considered as a gift and the law also does not take into account. if something is done in terms of promise, love, affection and this can be seen from the case Currie v. Missa (1875) where one of the judge also gave importance to the interest, profit, benefits arising to the parties. In bilateral type of contract, an agreement contains mutual promises and sufficient consideration of the parties to form a contract. Whereas in unilateral type of contract, an agreement in which one party promises to ot...

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... case, a son complained that he receives less property than his brother does. At that time, his father promised him that he would release him from the debt if he would stop complaining. But after his father’s death executors came to recover the debt in consideration for his promise. The executors have found the consideration for no future complaints, for this releasing from the debt is not a good consideration, so son will continue to be liable.
The reader can conclude that the consideration is required to enter in the contract. And how ICA laws deals under section 2(d) and 25(2) of ICA for the consideration in the above e.g. of cases. The one of the point which I have tried be concluded for the reader is to make sure consideration must be lawful and real for an agreement, if unlawful than it will be considered void. Thus, Consideration is essential element of ICA.

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