Transcript Lawful Consideration and Object

Lawful Consideration
and Object
 Consideration
In the words of PULLOCK, “Consideration is
the price for which the promise of the other is
bought.
According to section 2(d) of the indian
contract act, “when at the desire of the
promisor,the promise or any other person has
done or abstains from doing or does or
abstains from doing or promises to do or
abstains from doing something such act or
abstainance or promise is called a
consideration for the promise.
Essential elements of consideration
 Consideration must move at the desire of
the promisor (DURGA PRASAD VS. BALDEV
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AND KEDAR NATH VS. GAURI MOHAMMAD need
to be mentioned here.)
Consideration may proceed from the promisee or
any other person ( the case of chinnayya vs
ramayya )
Consideration may be promise to do something
or to abstain from doing something
Consideration may be past, present or future
There must be some consideration,but
consideration need not be adequate
Consideration must be legal,real or certain
Agreement without
consideration
“void”- exceptions
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Acc. To sec 25 the contract is said to
be valid without consideration in the
following circumstances.
1. Contracts made out of natural love
and affection (the case of rajlakhi vs bhootnath
2.
3.
4.
AND venkant swami vs ranga swami need to be
mentioned here)
Promise to pay a time barred debt
Promises made to compensate for voluntary
services
Contracts of agency
5. Gift and donation (Abdul aziz vs
mazoom ali AND kedar nath vs
Mohammed gauri )
Stranger to a contract and stranger
to consideration
The cases which need to be mentioned
here are-:
 DUNLOP TYRE LMT. VS. SELIFRIDGE
 SAID VS. BUTT
 CHINNAYYA VS. RAMAYYA
Exceptions to the rule
1. Where a trust is created
2. Family settlement ( Suppu Ammal vs.
Subramanyan and Khawja
Mohammad vs. hussani Begam)
3. In case of agency
4. Charge on specific immovable
property
5. Assignee
 CONSIDERATION AND OBJECT
 UNLAWFUL CONSIDERATION AND
OBJECT
CONDITIONS OF UNLAWFUL
CONSIDERATION AND OBJECT
1. Act forbidden by law
2. If it is of such a nature that if permitted it
would defeat the provisions of any law
3. If it is fraudulent
4. If it involves or implies injury to a person or
property of another (the case of W.H.
SMITH vs CLINTON HARRIS)
5. If the court regards it as immoral or
opposed to public policy
Agreements opposed to
public policy
1. Trading with alien enemy
2. Agreements interfering with course of
justice
3. Agreements to stiffing prosecution
4. Agreements to change the the period
limitations
5. Marriage brokerage agreements
6.Agreements in restraint of parental
authority
(the case of Gindu vs Smt Ani Besant can be
mentioned)
7.Agreement for procuring public office
(the case of Swaminath vs Muttu Swami AND
Parkinson vs college of Ambulance)
8. Agreements intefering with marital duties
9. Agreements tending to create monopolies
10. Agreements in restraint of personal
freedom
11. Agreements of sale of degree or honours
12. Agreements for improper promotion of
litigation
i. Maintenance
ii. Champterty (the case of Nuthaki Venkat Swami
VS Katta Nagi Reddy AND Rampal vs neelkant)
13. Agreements tending to create interest
opposed to duty
14. Other agreements
 CONSIDERATION AND OBJECT
UNLAWFUL IN PART
 ADEQUACY OF CONSIDERATION