![1. Natural love and affection:
[Case: Venkatswamy v. Rangaswamy ]
• An elder brother, on account of natural love
and affection, promised to pay the debts of his
younger brother.
• The agreement was put to writing and was
registered.
Held : The agreement was valid](https://image.slidesharecdn.com/consideration-230222074134-e40f7564/85/consideration-ppt-15-320.jpg)
consideration.ppt
- 2. NEWS • As per your choice
- 3. LEARNING OUTCOME • Apprehend the essentials for a valid contract • Comprehend the exceptions of contract without consideration
- 4. Consideration is defined as price of promise OR Quid pro quo – something in return This means that when a party to an agreement promises to do something, he must get something in return.
- 5. DEFINITION Section 2 (d) Indian Contract Act, “ When at the desire of the promisor, the promisee or any other person has done or abstain from doing, or does or abstain from doing, or promises to do or abstain from doing something, such act or abstinence or promise is called consideration.”
- 6. “Consideration is a price for which the promise of the other is bought, and the promise thus given for value is enforceable”
- 7. Example A agrees to sell his house to B for Rs.10000. Here B’s promise to pay Rs.10000 is the consideration for A’s promise to sell the house, and A’s promise to sell the house is a consideration for B’s promise to pay Rs.10000.
- 8. Consideration May be : • An act - means doing of something. e.g. Guarantee by A • An abstinence – promising not to do something . e.g. tenant promise not to file a case • A return promise – the promise of each party is the consideration for each other e.g. promise to sell the house
- 9. Legal Rules : Consideration 1. It must move at the desire of the promisor (Case : Durga Parsad v. Baldeo – market improvement ) 2. It may move from promisee or any other person on his behalf(immaterial who furnishes it) Case : Chinnaya v. Ramayya
- 10. 3. It need not be adequate 4. Consideration must be real and not illusory: - physical impossibility - legal impossibility - uncertain consideration - illusory consideration
- 11. 5. It may be past, present or future - past (when consideration for present promise has been given in past) - present/executed (when consideration given simultaneously ) - future/ executory (when consideration is to pass subsequently to the contract)
- 12. 6. It must not be performance of existing duties 7. It must not be illegal, immoral or opposed to public policy 8. It must be ‘something of value’
- 13. A Contract without consideration is void – Exceptions OR “No Consideration, No Contract” - Exceptions
- 14. “An agreement made without consideration is void........” But following are the certain exceptions to this general rule where the agreement is valid and enforceable even if it is without consideration:
- 15. 1. Natural love and affection: [Case: Venkatswamy v. Rangaswamy ] • An elder brother, on account of natural love and affection, promised to pay the debts of his younger brother. • The agreement was put to writing and was registered. Held : The agreement was valid
- 16. Continued… Case: Raihikhy Dohee v. Bhootnath • A Hindu husband by a registered document, after referring to quarrels and disagreements between himself and his wife, promised to pay his wife a sum of money for her maintenance and separate residence. • it was held that the promise was unenforceable
- 17. Continued… 2. Compensation for voluntary services: Example: A finds B’s purse and gives it to him. B promises to give A Rs. 50. This is a contract.
- 18. 3. Promise to pay a time bared debt Example: A owes B Rs.10000, but the debt is barred by the Limitation act. A signs a written promise to pay B sum of Rs.10000. this is a valid contract 4. Completed gift
- 19. 5. Contract of agency 6. Charitable subscription (Kedar nath Vs. Gauri Mohamed) 7. Remission by the promisee, of performance of the promise
- 20. MCQ • As per your preference
- 21. Thank You