Consideration

DEFINITION:

Section 2 (d), The Indian Contract Act, 1872 –

“When, at the desire of the promisor, the promise or any other person has done or abstained from doing, or does or abstains from doing or promises to do or abstain from doing something, such act or abstinence or promise is called a consideration for the promise.”

Other Definitions:

Blackstone: “Consideration is the recompense given by a party contracting to the other.”

Pollock: “An act of forbearance of one party or the promise thereof is the price for whichthe promise of the other is bought, and the promise thus given for value is enforceable.” [Pollock On Contracts (13th Ed.) p. 133]

Key Provisions:

• Section 23: What consideration and objects are lawful, and what not 

• Section 25: Agreement without consideration, void, unless it is in writing and registered or is a promise to compensate for something done or is a promise to pay a debt barred by limitation law

CASE INDEX:

• Combe v. Combe   [1951] 2 KB 215   [Summary]
• District Board of Ramnad v. D.K. Mahomed Ibrahim Sahib   (1933) 64 MLJ 574   [Full Text]
• Durga Prasad v. Baldeo   1880 3 All 221   [Summary]

Past Consideration:

• Re McArdle    (1951) Ch 669   [Summary]

Privity of Consideration:

• Samuel Pillai v. Anathan Pillai   [Summary]
• M.C. Chacko v. State Bank of Travancore    1970 AIR 500   [Summary]   [Full Text]

Adequacy of Consideration:

• Chappell & Co. Ltd. v. Nestle Co. Ltd.   [1960] AC 87   [Summary]

Real Consideration:

• White v. Bluett   (1853) 23 LJ Ex 36   [Summary]