St.

Xavier’s College of Management & Technology

Name :- Awani Goswami

Roll No :- 46
Stream :- BBE
Subject :- Legal Aspect
Topic :- Elements Of Consideration
Under the Guidance :- Priya Gupta Ma’am
Table Of Contents

 INTRODUCTION
 What Is consideration?
 Elements of Consideration
 Conclusion
 References
 According to Section 2(d) of The Indian Contract Act
1987,when at the desire to the promises, the promisee or any
other person has done or abstained from doing or does or
abstain from doing something, such act or abstinence or
promise is called a consideration.
What Is Consideration?

o Consideration is a promise, performance, or

forbearance bargained by a promisor in exchange for
their promise.
o Consideration is the main element of a contract.
Without consideration by both parties, a contract
cannot be enforceable.
 Elements Of Consideration

o Consideration must be the result of the promiser’s

desire.
o Consideration may move from the promisee or any
other person.
o Consideration may be a promisee to do or obtain
from doing something.
o Consideration may be past,present or future.
o Consideration must be legal,real or certain.
 Conclusion

 Consideration is a benefit which must be bargained

for between the parties, and is the essential reason for
a party entering into a contract.
 Consideration must be of value and is exchanged for
the performance or promise of performance by the
other party (such performance itself is consideration).
  References

o https://www.law.cornell.edu/wex/consideration
o https://
www.taxmann.com/post/blog/consideration-under-the-india
n-contract-act-1872
o Elements of Mercantile Law – Author Of N.D Kapoor’s
o Class Notes
Thank you