Definitions by various scholars Blackstone Pollock Rann v Hughes Lord Baron Skynner Curie v Misa J Lush S 2d Consideration is called quid pro quo ie something in return ID: 1003394
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1. ConsiderationSection 25- An agreement made without consideration is void.Definitions by various scholars– Blackstone, PollockRann v Hughes, Lord Baron SkynnerCurie v Misa, J LushS. 2(d)Consideration is called “quid pro quo” i.e. something in return.Consideration is motive of contract.Samiuddin, Contract Law-I
2. Legal Rules of ConsiderationConsideration should be furnished at the desire of the promisor. Durga Prasad v BaldeoConsideration may be moved by the promisee or any other person.Consideration may be past, present or futureConsideration must be of some value in the eye of law, i.e. it must be real and not illusory.Consideration need not be adequate to promise.(Explanation 2 of S. 25)Forbearance to sue is good consideration. (Mcgregor v Mcgregor) Samiuddin, Contract Law-I
3. Promissory EstoppelPromissory Estoppel is an exception to consideration.Kedar Nath v Gorie Mohd.Union of India v Anglo Afghan Trading Co. M. P. Sugar Mills v State of U.PSamiuddin, Contract Law-I
4. Privity of ConsiderationStranger to consideration cannot enforce the contract.English Law:Dutton v PooleTwiddle v AtkinsonDunlop Pneumatic Tyres Co. v Selfridge & CoIndian Position:Not applicable in India [S. 2(d)]Chinnaya v RamayaSamiuddin, Contract Law-I
5. Privity of ContractStranger to Contract cannot enforce sue to enforce the contract.Applicable both in England and IndiaJamna Das v Ram AvtarKhwaja Md. Khan v Hussaini BegumM. C. Chacko v Bank of TravancoreExceptions to rule of Privity of Contract— Beneficiaries under Trust or Charge (Khwaja Md. Khan v Hussaini Begum, Rana Umanath Singh v Jung Bahadur) Family settlement and arrangementAcknowledgment or estoppel (Narayani Devi v Tagore Industries)Covenant Running with the landContract by Agent bound the Principal.Samiuddin, Contract Law-I
6. Agreements without consideration are void (S. 25)Exceptions S. 25(1)– Agreement made on account of natural love and affection between parties standing in near relation. But such agreement must be made in writing and registered. Rajlukhy Dabee v. Bhoothnath MookerjeeS. 25(2)-- Past Voluntary ServiceS. 25(3)– Time-barred debt Other ExceptionsContract of Indemnity (Ss. 124, 125)Contract of guarantee (S. 126)Bailment (S. 159)Agency contract (S. 185)Gift (S. 123 TPA)Samiuddin, Contract Law-I