1.
"Insufficiency of consideration is immaterial: but an agreement without
consideration is void." Comment.
Consideration is a technical term used in the sense of quid-pro-quot (i.e., something in return).
When a party to an agreement promises to do something, he must get something in return. This
“something” is defined as consideration.
In India, the definition of consideration is contained in Section 2 (d) of the Indian Contract Act,
1872.
It reads: “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 promises to abstain
from doing something, such act or abstinence or promise is called a consideration for the
promise.”
If a person promises to do or abstains from doing something, he should be compensated for his
act or abstinence failing which he will not have an inducement to perform his part of promise.
So, the inadequacy of consideration is immaterial but an agreement without consideration is
considered as void.
But, if the agreement is not supported by consideration at all, then one of the parties to it is not
getting anything in return of its promise, the agreement is void. Section 25 of the Indian Contract
Act points out in this regard the enforce ability of such an agreement by stating such agreements
to be void (except under special circumstances).
An agreement made without consideration is void agreement unless it's expressed in writing and
registered under the law for the time being in force for the registration of documents. And it is
made on account if natural love and affection between the parties standing in near relation to
each other.
Agreement must be in writing and registered. If one have an oral arrangement or unregistered
agreement although it is in writing, it won't be valid even though it proceeds from natural love
and affection and even if the parties in contact are near relations to each other. It must be both in
writing and registered.
Consideration is very important to form a contract. Consideration has to make upon both
parties benefits and detriment, it can be one-sided as long as it’s adequate. Past consideration is
not a valid consideration except it is previously requested or done in a business manner. If
someone giving up the right to sue in a contract, it’s also firm to constitute a consideration.
Generally, performing an existing public or contractual duty is not an effective consideration.
However, if someone requested to do something beyond of an existing duty, or the performance
is requested upon a party benefit or avoids detriment, there is a valid consideration.
