Contents
What are the essential elements of consideration?
Essential Elements of a Valid Consideration
- Consideration must be at the desire of the promisor.
- Consideration may move from promisee or any other person.
- Consideration must be real.
- Consideration need not be adequate.
- Consideration may be in Past, Present, or Future.
- Consideration must be lawful.
What is consideration and essential elements of consideration?
Meaning of Consideration. Consideration means “something return” or “something which is given and taken.” It refers to something of value given to someone in return for goods, services or some other promise. It is the price paid for contract.
What are elements of consideration?
Elements of consideration 1. A performance or a return promise must be bargained for. 2. A performance or return promise is bargained for if it is sought by the promisor in exchange for his promise and is given by the promisee in exchange for that promise.
What is meant by consideration ‘?
1 : careful thought : deliberation Give my idea some serious consideration. 2 : thoughtfulness for other people. 3 : something that needs to be thought over carefully before deciding or acting. 4 : a payment made in return for something.
What are the two elements of consideration?
Thus, there are two basic elements to consideration: (1) Legal Sufficiency (something of value in the eye of the law) and (2) bargained for exchange. Both must be present to satisfy the requirement of consideration.
What is consideration and its types?
Consideration is classified as one of two types: executed: when the promise has been performed within the meaning of the contract, or. executory: when the promise has not been performed.
When do you have to give an element of consideration?
ELEMENTS OF CONSIDERATION [4316] Consideration, which must be given in order to make a contract legally binding, is legally sufficient and bargained-for value, given by the promisor in return for the promisee performing or refraining from performing some act which results in a detriment to the promisee and/or a benefit to…
What are the elements of consideration in a contract?
ELEMENTS OF CONSIDERATION • Consideration, which must be given in order to make a contract legally binding, is legally sufficient and bargained-for value, given by the promisor in return for the promisee performing or refraining from performing some act which results in a detriment to the promisee and/or a benefit to the promisor.
What is the meaning of the word consideration?
In other words “Consideration is a reward accepted or given in return for the promise. it is a fact that without consideration agreement is not valid.” 1. By Promisee :- Consideration by the promisee or any other person. 2. Desire of the Promisor :- It should be given at the desire of the promisor.
Which is an example of a valid consideration?
These are a few tests of valid consideration. “When at the desire of the promissor, the promisee or any other person has done or abstained from doing or does or abstains from doing or promise to do or abstain from doing something, such act or abstinence or promise is called consideration for the promise”. – Sec.2 (d), Indian Contract Act.