The four component parts of the definition of consideration (given above) may well be described as the essentials of valid consideration. We shall now discuss these essentials one by one in detail.
1. Consideration must move at the desire of the promisor. In order to constitute legal consideration the act or abstinance forming the consideration for the promise must be done at the desire or request of the promi-sor. Thus acts done or services rendered voluntarily, or at the desire of the third party, will not amount to valid consideration so as to support a contract. The logic for this may be found in the worry and expense to which every one might be subjected, if he were obliged to pay for services, which he does not need or require.
2. Consideration may move from the promisee or any other person. The second essential of valid consideration, as contained in the definition of consideration in Section 2 (d), is that consideration need not move from the
promisee alone but may proceed from a third person.
promisee alone but may proceed from a third person.
Thus, as long as there is a consideration for a promise, it is immaterial who has furnished it. It may move from the promisee or from any other person. This means that even a stranger to the consideration can sue on a contract, provided he is a party to the contract. This is sometimes called as ‘Doctrine of Constructive Consideration’. Under English law, however there is privity of consideration i.e. consideration must move from the promisee and promisor only, a stranger cannot furnish consideration.
3. Consideration may be past, present or future. The words, “has done or abstained from doing; or does or has abstained from doing; or promises to do or to abstain from doing,” used in the definition of consideration clearly indicate, that the consideration may consist of either something done. or not done in the past, or done or not done in the present, or promised to be done or not done in the future, To put it briefly, consideration may consist of past, present, or future act or abstinence.
Consideration may consist of an act or abstinence. Consideration may consist of either a positive act or abstinence i.e. a negative act. Thus, an agreement between B and A, under which B; on failing to pay the debt amount on the due date to A; promises to raise the rate of interest from 9 per cent to 12 per cent in consideration of A promising not to file a suit against him for another one year, is a valid contract; A’s abstinence being the consideration for B’s promise.
4. Consideration must be ‘of something’ The fourth and last essential of valid consideration is that it must be ‘something’ to which the law attaches a value. The consideration need not be adequate to the promise for the validity of an agreement. The law only insists on the presence of consideration and not on the adequacy of it. It leaves the people free to make their own bargains. Thus, where A agrees to sell his motorcar worth Rs 20,000 for Rs 1,000 only and his consent is free, the agreement is a valid contract, notwithstanding the inadequacy of the consideration. However, if the consideration be grossly or shockingly inadequate, and if one of the parties to the contract alleges that his consent was obtained by fraud, coer-cion Or undue influence, the court will treat inadequacy .of consideration as an evidence in support of such allegation and will declare the contract void.
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Essentials of Valid Consideration
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