Consideration
When,
at the desire of the promisor the promisee or any other person who has done or
abstained from doing, or does or abstains from doing, or promises to do or to
abstained from doing, something, such act or abstinence or promise is called a
consideration for the promise. Section 2(d)
At
the desire of the promisor
The
word "at the desire of the promisor" in S.2 do not necessarily
contemplate a promisor who, at the time, possesses contractual liability.
Essentials of consideration
Consideration
is what moves from the promisee whether it be an advantage to the, promisor or
a detriment suffered by the promisee where parties have lawfully entered into
mutual commitment, whit open eyes and free volition, maturing into contractual
obligation; such cannot easy be allowed a unilateral and, willful disclaimer.
Consideration
must be conducive to contract
The
words 'at the desire of the promisor' imply a promise which has a real effect
in conducing the contract.
At
the desire of third party
Where
a person advanced money to the son on an undertaking given by his father and
obtained promissory notes for the amount advanced, it was held that those
pronotes were without consideration inasmuch as the advances were not made at
the desire of the son who was the promisor under the pronotes.
Consideration
need not be to the benefit of the promisor
If
the promisee does some act by which a third person is benefited which he would
not have done but for the promise, the consideration is sufficient. Therefore
guarantees executed in favour of plaintiff against loan advanced by plaintiff were
good consideration.
Consideration
may proceed from third party
The
consideration for a promise need not necessarily move from the promisee but may
move from a third party. In marine insurance broker's undertaking to pay
premium consideration though it moves from a third person.
Compromise
as consideration
The
compromise of doubtful rights is a sufficient basis of and forms a sufficient:
consideration for the agreement. A. compromise is an agreement to put an end to
a dispute and to terminate or void litigation, and real consideration is not a
sacrifice of right but an abandonment of a claim.
Consideration
to one compromiser is consideration to all
Consideration
paid to one of several joint promisors is sufficient consideration to support a
promise to pay made by others.
Reciprocity
is not necessary
Reciprocity
of obligations is not of the essence of consideration. An act done of
forbearance made in return for a unilateral promise is a sufficient
consideration to support the promise.
Inadequate
consideration
A
smaller sum of money advanced can validly constitute consideration for
acceptance of liability to a bigger amount by the debtor.
Absence
of consideration
A
meritorious and a gratuitous consideration such as natural love and affection
or obedience and submission by way of respect cannot be good consideration or
valuable consideration.
Proof
of consideration
Where
the document is silent in regard to consideration, but recites the particular
consideration which induced the party to execute the document it will not be
competent for the party to show that in addition therefore, but on which the
document there was some other document therefore, but on which the document is
silent. But recital in contract that the vender has received consideration can
be him, by proving a collateral agreement to the effect that money was to
remain it the vendee for a specific purpose.
a.
Onus of proof
Onus
of proving that there was no consideration rests on the person who denies it.
When execution of a document and receipt of consideration has been admitted at
the time of registration, the burden of proving non-receipt of consideration
falls upon the party who makes such allegation.
b.
Who can challenge payment of consideration?
The
law does not allow strangers who have no interest at stake to intermeddle with
the affair of other persons. Hence no stranger can challenge a transaction on
the ground of want of consideration.
Future
promise as consideration
A
promise to do something in future is legal consideration. A promise so long as
it remains executor will not amount to consideration on the eye of the law
unless it involves a legal obligation which the promisor could be compelled to
perform. But where it involves no such obligation its execution alone will
constitute sufficient consideration.
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