Consideration' means "something in return," i.e.

quid pro quo, which is an

essential element in determining the parties' genuine intention to create a legal
relationship.

Section 2(d) of the Indian Contract Act states that "when the promisor, promisee,
or any other person has done or abstained from doing or does or abstains from doing
or promises to do or abstain from doing something, such act, abstinence, or promise
is called a consideration for the promise."

• At the offeror's request, consideration should be passed: - The offeree

should only send the offeror's desired consideration. The offeree has no right to
claim counter-consideration if he sends unwanted consideration. Baldeo v. Durga
Prasad.
• A promisee or another person may be the source of consideration:- Section
2(d) of the Indian Contract Act states that consideration may come from the
promisee or, if the promisor has no objections, from any other person.

Only the promisee should be considered in English law. Despite this, English law
has made an exception, requiring that the promisee and the other person sending the
consideration be related by blood. (Poole v. Dutton)

• Consideration does not have to be adequate: contract consideration does not

have to be of equal magnitude. The contract's validity will not be harmed by
insufficient consideration. (Thomas against Thomas)

• The consideration must be legal:- The presence of illegal consideration

renders the contract void.

1. EXECUTORY (FUTURE) CONSIDERATION :

The Executory Consideration or Future Consideration is the consideration when one
or more parties make promise that consideration is to be performed in future.
In simple terms, executory consideration occurs when a party has yet to complete
his contractual responsibilities while also promising to perform that consideration
at a later period.
For instance, A wishes to give it to his brother for his birthday. B sold A a bike,
and A requested that it be delivered on his brother's birthday. The delivery bike
will be used in the future here. This is an example of executory/future
consideration.

2. EXECUTED (PRESENT)CONSIDERATION :
The executed consideration, also known as the present consideration, is when the
parties have fulfilled their pledges.
In basic terms, the contracting parties fulfilled their contractual
responsibilities, and the contract's performance was finished; this is referred to
as an executed consideration.
Example: A purchases a pen for Rs. 20/- from a stationery store. A pays the shop
owner Rs. 20 in exchange for the pen. Both considerations have been finished.
Executed/present consideration is the term for this situation.

3. PAST CONSIDERATION :
With a general contract, consideration should be with the contract; however, in
past consideration, the act has already been done before making any promise, and
this is referred to as Past Consideration in contract law.
The previous consideration is no consideration, according to Anson, and therefore
is unenforceable in English law. As a result, in Common Law, prior consideration
has no value and is not good consideration.
For example, A found a pocketbook on the side of the road and searched for its
actual owner, B. B receives the purse from A. Then B rewards him with Rs. 500/-.
This is an example of past consideration.
In the scenario above, A acted freely and returned B's purse. This is a
consideration from the past.

1. DURGA PRASAD V. BALDEO AND OTHERS (1881)ILR3ALL221 :-

• JUDGEMENT
The plaintiff's claims were denied, and the case was dismissed by the court. This
was done because there was no conspicuous and recognised consideration involved in
this case, and hence section 2(d) of the Indian Contract Act, 1872 prevents the
arrangement from being recognised as a contract. According to Section 25 of the
Act, the absence of a consideration rendered the contract unenforceable. The judges
also determined that because the Act defines the necessity of consideration as an
essential condition for a contract, there is no room for an appeal, and the case
was dismissed.

2. Chinnaya V. Ramayya (1882) ILR (1876-82) 4 Mad 137

• JUDGEMENT
The Court determined that the agreement authorising the transfer of the estate to
the respondent as a gift and the commitment to pay an annuity are both concurrent
agreements. As a result, each of these agreements will be treated as a single
transaction in light of the definition and explanation of compensation provided in
section 2(d) of the Indian Contract Act, 1872.

As a result, the responder is obligated to pay the aforementioned consideration

because she committed to do so while accepting the estate as a gift from her
mother.

9. Chappell & Co Ltd v Nestlé Co Ltd [1960] AC 97

• DECISION / OUTCOME
Despite the fact that the wrappers had no intrinsic economic worth in and of
themselves, the House of Lords ruled that they were part of the consideration for
the sale of records. 'A contracting party can stipulate what consideration he
chooses,' Lord Somervell held (at 114). If it is determined that the promisee does
not like pepper and will toss away the corn, a peppercorn remains a good
consideration.'As a result, because the wrappers had no monetary value, the sale
was not covered by section 8 of the 1956 Act, and the Lords ruled in favour of the
defendants.