Sociology | Mercantile Law | International Law | International Relations
Consideration is defined by Sec.2(d) as, “When at the desire of promiser, the promisee or any other person has done or abstained from doing, or does or abstains from doing or promises to do or abstains from doing, something such act or abstinence or promise is called consideration for the promise.”
On anlysing we find that consideration involves:
- (a) Doing of an act: A handedover his house to B on rent for C’s guarantee, that B will pay the rent after 2 months. House on rent to B by A is the consideration for C’s promise.
- (b) Abstinence or forbearance: B was unable to pay rent after 2 months. D promise to pay the rent after 1 month for not sueing B. A’s not sueing B is consideration for D’s promise.
A return promise: A agrees to sell his house to B for Rs.500,000 and B agrees to purchase the house for Rs.500,000. A’s selling house is consideration for B’s payment of Rs.500,000, and B’s payment is consideration for A’s house.
Legal rules as to consideration
- It must move at the desire of the promiser
- It may move from the promisee or any other person
- It may be past, present or future
- It must be real and not illusory
- It need not be adequate
- It must be something that the promiser is not already bound to do
- Consideration must not be unlawful.