consideration, in contract law, an inducement given to enter into a contract that is sufficient to render the promise enforceable in the courts. The technical requirement is either a detriment incurred by the person making the promise or a benefit received by the other person.
One may also ask, what are the essentials of a valid consideration?
1) It is given ‘at the desire of the promisor’; 2) It may move from any person; 3) It can be past, present or future consideration; 4) It must be real and possess value.
Executory Consideration or Future Consideration, Executed Consideration or Present Consideration, or. Past Consideration.
Likewise, people ask, what is consideration and types of consideration?
There are six kinds of consideration in contract law. Executory (Future) Consideration. Executed (Present) Consideration. Past Consideration. Conditional Consideration.
What is consideration example?
Anything of value promised by one party to the other when making a contract can be treated as “consideration”: for example, if A signs a contract to buy a car from B for $5,000, A’s consideration is the $5,000, and B’s consideration is the car.
What is consideration in business law Slideshare?
Definition of Consideration [Section 2(d) of Indian Contract Act,1872] • “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 …
What is consideration in Indian Contract Act?
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.”
What is consideration in law Slideshare?
Consideration need not to be adequate but it must have some value 6. It must be real & not illusory 7. It must be something which the promisor is not already bound to do 8. It must not be illegal, immoral or opposed to public policy.
What is consideration in the law?
Something bargained for and received by a promisor from a promisee. Common types of consideration include real or personal property, a return promise, some act, or a forbearance. Consideration or a valid substitute is required to have a contract. business law. contracts.
What is meant by the term consideration?
something that is or is to be kept in mind in making a decision, evaluating facts, etc.: Age was an important consideration in the decision. thoughtful or sympathetic regard or respect; thoughtfulness for others: They showed no consideration for his feelings.
What is the past consideration rule?
The term “past consideration” refers to an act that was performed, or a promise that was made, before the new promise that is at issue and is being attempted to be enforced. Under the law, past consideration cannot constitute consideration for the new contract because it was not given for that new promise.
Which of the following best defines adequate consideration?
Adequate consideration means the reasonable value of the goods or services received in exchange for transferred property approximates the reasonable value of the property transferred.