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Thread: Define consideration, when consideration or object of an agreement unlawful.

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    Word Icon 35px Jpg.ashx Define consideration, when consideration or object of an agreement unlawful.

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    Q. Define consideration, when consideration or object of an agreement unlawful. (2003)
    1. Introduction:
    Consideration is used in the sense of quid pro quo (something in return). In other words consideration is a reward accepted or given in return for the promise. A promise without consideration is no contract and is not enforceable. Consideration should be good and valuable.
    2. Definition of consideration:
    Contract act sec 2. Defines consideration in the following words. “When at the desire of promise the promise or any other person has done or abstained from doing, or does or abstain 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 the consideration for the promise.”
    According to Pollock
    “Consideration is the price for which promise of another is bought.”
    According to David
    “Consideration is some benefit received by party who gives a promise or pertormance of an act.”
    3. Illustration:
    Rabia agree to sell her car to Ali for Rs. 3 Lack. Now Ali promise to pay such amount is consideration for Rabia’s promise.
    4. Types of consideration:
    Following are three types of consideration:
    (a) Past consideration
    When an act has already been done and subsequently a promise is made to pay remuneration for that act, the consideration for the promise is past .
    (b) Present consideration
    If the consideration is given at the same time when the contract is made it is called present consideration.
    ( c) Future consideration
    If the consideration is given if a later date after making the contract it will be vcalled future consideration.
    5. Essentials of consideration:
    (i) Consideration should be given by the promise.
    (ii) It should be lawful.
    (iii) It should be given at the desire of the promiors.
    (iv) It may be past, present or future.
    (v) It may consist of an act or abstinence.
    (vi) Consideration must be real.
    (vii) It need not be adequate.
    6. Exceptions:
    It is a fact that without consideration an agreement is void but it has following exception.
    (I) Love and affection:
    If an agreement is made between parties for natural love and affection consideration is not necessary.
    (II) Contract of agency:
    No consideration is required to create agency.
    (III) Voluntary services:
    In case of compensation for voluntary services there is no requirement of consideration.
    (IV) Time barred debt:
    Where an agreement is a promise made in writing and signed by the person to be charged to pay a debt of which the creditor might have enforced payment but for law for the limitation of suits.
    (V) Contract under seal:
    Under the English law a contract made in form of a dead under seal is valid even though it is made without consideration.
    (VI) Extension in time limit:
    There is no need of any consideration if agreement is made to extend time for enforcement of the contract.
    7. Un-lawful consideration:
    According to sec. 10 of the contract act.
    “An agreement is a contract enforceable only if it is made for a lawful consideration and which a lawful object.”
    8. Causes of unlawful consideration:
    According to sec 23. The consideration or object of an agreement is unlawful in the following cases.
    (I) Prohibited by law:
    If the object of a agreement is prohibited by law agreement will be void.
    (II) Element of fraud:
    If there is element of fraud in the object of agreement, the consideration will be unlawful.
    (III) Immoral:
    If case of immoral, the consideration will be unlawful.
    (Iv) against public policy:
    If the object of consideration of an agreement as opposed to public policy, the consideration will be unlawful.
    (v) Injury to other person or property:
    If the object or consideration of agreement is to cause an injury to the person or property of another is illegal and void.
    9. Conclusion:
    To conclusion it can be said, that consideration is one of the essential element of valid contract. An agreement without consideration is void. However sec 23 contains some exceptions when the agreements even though they are made without consideration are enforceable and valid.

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