NAME : SHAIKH TABBU ABDUL

CLASS : M. COM. 1 YEAR

SUBJECT : LEGAL ASPECT OF
BUSINESS
SEMINAR TOPIC : CONSIDERATION
 CONSIDERATION

Consideration is the central concept in the common

low of contract and is required , in most cases, for contract
to be enforceable . Consideration is the price one pays for
another’s promise. It can take a number of forms : money ,
property , a promise, the doing of an act , or even refraning
from doing an act .
• Payment or money , a vitual element in the low
of Contracts , consideration is a benefits which
must be bargained for between the parties , and is
the essential reason for a party entering into
contract…In a Contract, one consideration.
• (thing given) is exchanged for another
consideration . Not doing an act can be
consideration, such as “I will pay you $1000 not to
build a road next to my fence “ . Sometimes
consideration, is “ nominal “ meaning it is started
For from only , such as $10 as consideration for
conveyance of title, which is used
• To hide the true amount being paid. Contract may become
unenforceable or rescindable ( undone by rescission) for “
failure of consideration when the intended , is damaged or
disroybed, or performance is not made properly. ( as when the
mechanic does not make the car run Properly acts) . Which are
illegal or so immoral that they are against established public
policy can not serve as consideration.
 EXAMPLE
• Prostitution, gambling were outword , hiring some on
break a Skater’s knee or including some one to breach an
agreement ( talk someone into backing out of promise).
 DEFINITION OF CONSIDERATION
In common parlance, consideration refers to something paid to
someone in return for something else. In legal terminology which
has to be paid by the promise to the promiser for doing or not
doing an act .
Consideration is necessary for a valid contract, in the
absence of which a promise cannot be enforceable.
• It may in here some benefit, right or less determint , or
obligation causing to the promise.
• Therefore, consideration can be a promise or performance of
an act which the parties to the Contract exchange with on
another. It is the base of a Contract.
 RULES OF CONSIDERATION
• There are several rules regarding the consideration,
discussed as under .
• 1. Must move at promiser’s desire :-
• Consideration must be provided by the promisee or
any other party , as per the desire or request of the
promiser.
2. May proceed from promisee or any other party :-
The consideration may more out from the promisee or
any other party . Here the word any oher person means
stranger , who is not a party to the Contract .
3 . Executed and Executory :-
Who one party to a contract has performed his/her
• Part , the consideration said to be excused for that property.
While the oher has just promised to perform it, the
consideration is said to be excutory for that party.
• 4 . Must be real :-
• It has to be real , certain and something of value. It should
not be illusory vages and legally or Physically impossible.
• 5 . Must be lawful :-
• It has to be lawful and moral and it must not violate
any public policy, otherwise it will not be regarded as
valid consideration.
 TYPES OF CONSIDERATION
Three are mainly three types of consideration: -
1 ..Executory or future consideration :-
Executory consideration, as the name suggests is one which is
yet to be performed. This means that the promise or obligation wi
be performed in future.
• 2 . Executory of present consideration:-
• Executed consideration, means the one which
is concurrently provided. When the promise is made .
Meaning that the act which amounts to consideration is
fully performed.
• Past consideration:-
• Past consideration refers to the formerly
performed act or fforbearance which amount to
consideration has already been provided before the
promise is given .
•Thank you