This is another exception to the principles of English law which shows that past considerations have no value in the eyes of the law, unless they are a promise or an action taken at the request of the proprotant. In a contract, consideration should only be provided at the request or request of the promisor. Any service provided voluntarily is not consideration and the person offering it cannot demand a service in return. For example, if A voluntarily took care of B while she was sick, she (A) cannot claim anything in return. And there can be no contract without consideration. The general rule if this payment of a lower amount does not meet the obligation to pay the highest amount. A partial payment of a debt is not sufficient consideration for a promise to renounce the remaining amount. The question that arises in this section is what is meant by natural love and affection. The Contracts Act contains no reference to this ambiguous term, and neither the court nor anyone else can rule on its exact interpretation. Those who are bound to each other by blood or marriage would find some degree of instinctive love and affection among themselves. But it`s not the same for all circumstances. The existence of close relations between the parties does not mean that there is affection between them. Therefore, the term is subjective, which cannot be adequately defined, and therefore anyone can easily exploit it.

The consideration provided by both parties in a contract must be real or credible, since an agreement without consideration is void. These should not be illegal activities. A consideration is unreal if prohibited by law; if it is fraudulent or immoral activity, or if it is something that may cause harm to a person or property. This rule does not require the principal to receive the benefit of the consideration provided by the principal. The consideration does not have to be transferred to the promisor, but can be made available to a third party. In T.V. Krishna Iyer v. Official Liquidator of Cape Comorin general traffic Co. (1951), the Kerala High Court ruled that payment of the bonus would not result in the section 25 exemption because the employees provided the services in exchange for wages that were not voluntary.

Therefore, additional compensation due to previous voluntary service was not allowed. We know that consideration involves a give-and-take concept. There are rules about what constitutes an exchange and what could be exchanged to become a good consideration. We will review these rules after reviewing the offer and acceptance requirements. The relationship between the rules of offer and acceptance on the one hand and the rules of consideration on the other is that the exchange, which constitutes an acceptance of an offer – in fact, an exchange of promises is provoked by the acceptance – is at the same time the necessary exchange that constitutes the counterparty. All of this will become clearer as we examine the doctrine of consideration in detail. [23] What is the right of consideration? The meaning and definition of consideration was set out in section 2(d) of the Indian Contract Act 1872 as follows: “If, at the request of the promisor, the promisor or another person has done or abstained or done something or evades anything, such action, abstinence or promise shall be called consideration for the promise. In Vijay Ramraj v.s Vijay Anand, it was found that if the promisor promised to pay his relative a certain amount of money during his lifetime, the agreement is enforceable. Here, the word consideration is used in the sense of consideration, which in turn means something. An agreement without compensation is therefore only a promise. The Latin maxim exnudo pacto non oritio action, which literally means that an agreement is null and void. In this case, if a promise has been made to a person who has voluntarily provided a service, any agreement without consideration is legally enforceable.

Outside of voluntary service, if a person performs an act to which the promisor was legally kept, a promise made in exchange for that service is considered valid. 11. An obligation towards a third party may be a good consideration A tax levied by the State does not constitute consideration unless it involves an excess of the statutory taxes. This type of agreement without consideration falls under § 25 (3) and for the appeal, certain essential points must be fulfilled: in the above case, the agreement is concluded out of love and affection as well as by a contractual document, so that the heirs of the deceased person have been held responsible for the concrete execution of a contract. The court ruled that there was no consideration for the promise to pay the additional salary. Under the original agreement, the applicant and the other crew members contractually agreed to do everything in their power in all emergency situations of the voyage. [20] 3. (a) A prior consideration is made if the consideration was provided before the date of the commitment.

(b) If the consideration goes hand in hand with the promise, this consideration is referred to. This is also known as executed consideration. Example – Rahim buys a watch in a store and pays the price immediately. The idea of moving away from Rahim is therefore a present or executed consideration. (c) Future consideration is a consideration if the consideration is moved to a later date. This is also called an executive consideration. Example: A provided money to B in June. But B delivered goods in July, consideration A is a future or executing consideration. [6] Example: A wants to give his car to B.B is a grandson of A.

Because of love and affection, the agreement is valid in the eyes of the law, even if there is no consideration. The consideration may be present or future, but not in the past. After the sale, the defendant promised that the horse was healthy and not malicious, but this was false and the plaintiff sued for violation. For example, consider an example of a non-quid agreement as the invalid exception. Suppose that two individuals A and B are neighbors. One day, there was a fire in B`s house, which A discovered in time and prevented it from spreading. For this reason, B promised to pay A a sum of Rs.10,000 at a later date. This is one of the no-quid pro quo agreements that is considered valid by a court. For example, if A B offers $200 to buy B`s villa, luxury sports car, and private jet, there are still considerations on both sides. A`s consideration is $200, and B`s consideration is the villa, car, and jet. [7] “An agreement that is not legally enforceable shall be deemed null and void.” 5. No consideration is required for the establishment of an agency (§ 185).

Note, however, that if no consideration has been transferred to the agent, he is only a free agent and is not obliged to perform the work entrusted to him, although when he starts the work, he must do so to the satisfaction of his client. Under the Indian Contract Act of 1872, a promisor may provide consideration to the promiser or to a third party if the former has no objections. In this case, however, the third party may sue the contracting parties. Section 148 of the Contracts Act defines a deposit as the delivery of goods from one person to another for a specific purpose. This delivery is made in accordance with a contract that is either returned or disposed of after the fulfillment of the purpose, according to the instructions of the person delivering it. No consideration is required for the conclusion of a deposit contract. According to section 24 of the Indian Contract Act, 1872, “if part of a single consideration for one or more objects or part or part of one of several counterparties for a single object is unlawful and the agreement is void.” A simple contract can be oral or written (or a combination of both). Simple contracts are concluded between two or more parties and require consideration. The defendant argued that there was no consideration for the promise because the plaintiff had already promised to marry his current wife. Courts have developed guidelines to determine whether there is really an agreement to resolve disputes when it is not clear. First of all, there must be an offer and an acceptance, whether in oral or written form. In most cases, the party receiving the offer takes the time to review it and often makes a counter-offer.

Sometimes the party that made the initial offer can change or withdraw it. All of these scenarios can lead to confusion and possible dispute. The court held that the interest had to be paid because the defendant already had the existing obligation to pay the debt and the mere payment of instalments was not sufficient consideration. [21] An agreement entered into without consideration is void unless it is written and registered under the law in force for the registration of documents and is entered into for good reason if the natural love and affection between the parties are closely linked. The agreement must be in writing and recorded. If you have an oral agreement or an unregistered agreement even if it is written, it is not valid even if it assumes natural love and affection and even if the parties are close to each other. .

About Author

blackk