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.
In this regard, what are the 3 requirements of consideration?
Each party must make a promise, perform an act, or forbear (refrain from doing something).
- Executory (Future) Consideration.
- Executed (Present) Consideration.
- Past Consideration.
- Conditional Consideration.
- Unreal Consideration.
- Illegal Consideration.
Beside above, what are the 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 rules for consideration?
Legal rules regarding consideration
- Part payment is not good consideration.
- Consideration must move from the promisee but need not flow to the promisor.
- Consideration must be sufficient but need not be adequate.
- Consideration cannot be illusory.
- Consideration must not be past.
What are the six types of consideration?
Types of Consideration
- Money.
- Services.
- Personal property.
- Real property.
- Promise to act.
- Promise to refrain from acting.
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 do mean by consideration?
What does section 167 of the Contracts Act state?
To communicate with the principal MASTER OF CORPORATE GOVERNANCE – TUNKU ABDUL RAHMAN UNIVERSITY COLLEGE Business and Corporate Law (MBBL 5014) Section 167 Contracts Act 1950 states that: “It is the duty of an agent, in cases of difficulty, to use all reasonable diligence in communicating with his principal, and in …
What is consideration and its characteristics?
The court in the case of Currie v Misa defined consideration as a right, interest, profit, detriment, loss, or responsibility. Its main characteristic is that the promissor must give a promise of something that is of value, and the promisee must give something of value in exchange.
What is consideration under contract Act 1950?
Refer to Section 26 of Contract Act 1950 states that agreement without consideration is void. Consideration is something value to either promise or promisor that is usually cash or property which is will be exchange between the promise and the promisor as the performance.
What is good consideration in contract law?
To be good consideration, it must have some value, even though it is very small value. Which mean that when the parties exchange the value, so exchanging the value, it has to be sufficient but need not to be adequate.
What is Section 2 A Contract Act 1950?
The Contract Act 1950
Section 2(a) When one person signifies to another his willingness to do or to abstain from doing anything, with a view to obtaining the assent of that other to the act or abstinence, he is said to make a proposal.
Why is consideration important in contract?
Consideration is one of the most important parts of a contract because it states why each party is joining the agreement. Consideration can be the exchange of money for products or services, or it can be a trade of one type of product for another type of product.