CONSIDERATION UNDER INDIAN CONTRACT ACT 1872 @LEXCLIQ BY KANUPRIYA BHARAGAVA

WHAT IS CONSIDERATION UNDER INDIAN CONTRACT ACT, 1872?

INTRODUCTION

Consideration is defined under section 2(d) of Indian Contract Act, 1872. Section 2 (d) of Indian Contract Act, “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 to abstain from doing, something, such act or abstinence or promise is called a consideration for the promise.” Any act that is done or will be done at the desire of the promisor. Act done or abstinence from doing that act at the desire of the promisor is a sufficient consideration for contract and this could be a plausible explanation for this definition.

Consideration works on the latin phrase of “quid pro quo”, which means something in return of something done. A favour in return for a favour done or will be done.

Section 25 of the Indian Contract Act of 1872 begins with the statement, “An agreement made without consideration is void…” There are certain exceptions, but an agreement without consideration is null and invalid and cannot be converted into a contract.

DESIRE OF THE PROMISOR

Section 2(d) of the Indian Contract Act, 1872 clearly states that anything done or to be done, or any abstain from doing something that is not done at the promisor’s desire, shall not be considered consideration for the promise made.

DURGA PRASAD V. BALDEO

In the case of Durga Prasad v. Baldeo, Durga Prasad constructed some shops in a market on the direction of the town collector. The retailers that occupied these locations pledged to give Durga Prasad a percentage of their sales as a commission. When Durga Prasad did not get the commission, he sued the shops. The commitment was not backed by any consideration, according to the court, because the stores were constructed on the collector’s command rather than the retailers’ request. As a result, there could be no restoration.

Because the following conduct was not performed at the promisor’s request, he was not entitled to compensation.

KEDARNATH BHATTACHARJI V. GORIE MOHAMED

In this case, it was thought that Howrah could be built if enough people signed up. Howrah’s commissioners were able to raise the required cash through public contributions. Plaintiff entered into a contract with the contractor to build it in this faith. The defendant, on the other hand, claimed that there was no consideration and refused to pay the sum.

The court decided that there existed desire on the side of the promisor, and therefore the defendant was held liable in this case.

An agreement without consideration is just a promise.

CONCLUSION

Consideration can be defined as something done or will be done by the person at the desire of the promisor or something not done or will not be done at the desire of the promisor is defined as consideration under section 2(d) of the Indian Contract Act, 1872. This can be a sufficient consideration for the promise. An agreement is void if there is no consideration in it and this is clearly stated under section 25 of Indian Contract Act, 1872, yet there are certain exceptions where an agreement is valid without consideration. But for a consideration to be valid desire of the promisor is necessary and it will constitute a sufficient consideration for the promise.

AUTHOR

KANUPRIYA BHARGAVA

 

REFERENCES

CONTRACT (BY AVTAR SINGH)

INDIAN KANOON

THE HINDU

INDIAN EXPRES

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