What are the three types of consideration?

Kinds of Consideration

Executory Consideration or Future Consideration,
Executed Consideration or Present Consideration, or.
Past Consideration.

Beside this, does consideration need to be adequate?

The rule is that consideration must be sufficient but need not be adequate. What this means is that the law requires the parties to have entered into a bargain where each side has provided something of value that the courts can see.

Keeping this in view, how is consideration determined? According to section 2(d) of the Indian Contract Act “when at the desire of the promisor, 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.”

One may also ask, what are elements of consideration?

Elements of consideration in business law include items of value offered by each party of a contract to the other. Consideration can be currency or property, but it can also be a promise to either do or refrain from doing a legal act.

What are the different types of considerations?

There are mainly three types of consideration:

Executory or Future Consideration: Executory Consideration, as the name suggests is one which is yet to be performed. …
Executed or Present Consideration: Executed consideration, means the one which is concurrently provided when the promise is made.

What are the main features 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 are the three characteristics of consideration?

Three Essential Characteristics of Valid Consideration:

Legality.
Adequacy.
The possibility of performance.

What are the two basic 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 are the types of considerations?

There are six kinds of consideration in contract law.

Executory (Future) Consideration.
Executed (Present) Consideration.
Past Consideration.
Conditional Consideration.
Unreal Consideration.
Illegal Consideration.

What is consideration example?

The definition of consideration is careful thought or attention or compassionate regard for someone or something. An example of consideration is someone deciding between two options for dinner. An example of consideration is someone bringing a friend dinner who just had a baby.

What is the requirement of consideration?

Consideration is the central concept in the common law of contracts and is required, in most cases, for a contract to be enforceable. Consideration is the price one pays for another’s promise. It can take a number of forms: money, property, a promise, the doing of an act, or even refraining from doing an act.

Which of the following meets the requirements of consideration?

Which of the following meets the requirements of consideration? A consideration involves the exchange of a legal value; a promise to refrain from crimes, to engage in a preexisting duty, or one without a binding obligation is not deemed a consideration.