Consideration

According to the Blackstone, "Consideration is the recompense given by the party

contracting to the other."

Case law: Kedarnath Bhattacharji v Gorie Mahomed

Fact of the case:- In Kedarnath Bhattacharji v. Gorie Mohammad, the offended party was a
Municipal Commissioner of Howrah and one of the trustees of the Howrah City Council Fund.
Sometime before, it was thought to make a City Hall in Howrah, they gave the essential
resources that could be raised and, provided that things existed, people were intrigued to work to
perceive what memberships they could obtain. After gaining enough membership to support the
funds required to build the town hall, the commissioners including the offender made an
agreement with the defendant to build such a structure. But as the membership list increased the
plans also expanded. Hence the expected cost of construction is increased from Rs. 26,000 to Rs.
40,000. The offended party though as a member  can sue the respondent for the benefit of
himself and each one of those members.

Decision:- In this case, the court held that although the promise was for a charitable purpose and
that D had no benefit, however, he is responsible for the promise made by him. It was noted that
in this case people were asked to knowingly subscribe to the purpose for which the money was to
be applied or used. They also knew that in the faith of their subscription they had to incur the
obligation to pay the contractor for the work.