Consideration in law is one of the main building blocks of a contract – Critically analyze the basic legal provisions of consideration in the law of contract.

Consideration in law is one of the main building blocks of a contract – Critically analyze the basic legal provisions of consideration in the law of contract.’


The most important part is integral parts of the contract. Consideration is most integrating part on the contract. Consideration is one of the essential elements of a contract together with consent of the parties and object of the contract. Consideration in law is one of the three main building blocks of a contract. It is absent; there is no contract just like the absence of any of the other two elements. Offer and acceptance is subscribed within consideration, and when consideration is established, intention to create legal relation would ordinary be present. If only one party offers consideration in contract, the agreement is not legally a binding contract. Something must be given or promised in exchange or return for the promise. A contract must be met with or supported by consideration to be enforceable, also, only a person who has provides consideration can enforce a contract.[1] Also it shows we are a thoughtful person and always thinking of other.


Contract word come from the “Latin work Contructus”. The terms of the contract, meaning, who, what where, when and how of the agreement, define the binding promises of each party to the contract.[2] Contract is one type of agreement between two or more competent parties in which an offer is made and accepted, and each party benefits. The contract can be formal, informal, written, oral or just plain understood. Contract is an agreement between two or more persons to do or to refrain from doing, a particular thing in exchange for something of value. Ex: Rohim give a offer to his friend “I gave a book and you give me 2000 take” and this time rohim friend accept it. This time is a contract.

Consideration is an essential element for the formation of the contract. Consideration must have a value that can be objectively determined. Some right, interest, profit or benefit accruing to one party or some forbearance, detriment, loss or responsibility given, suffered or undertaken by the other. Consideration is the recompense given by the party contracting to the other. Consideration means something which is of some value in the eye of law. Ex: Rohim say or promises not a written data, If Kamal pays 2000 Taka within 15 days so, I give a VAT. This time rohim is the consideration for Kamal’s payment.


Its means a reasonable equivalent and the other valuable benefit passed on by the promisor to the promise. Its application mainly located some three points of view. There are,

Present situation is, the act of consideration has been performed in return for the promise in the present. When consideration gone along with the promise, this is called present consideration. This is also called the executed consideration. This time contract is making now and result is show in present. Ex: Rana said with Biki, if you jump on the 1st floor, I give you 100 Taka and then Bike accept and next jump. This time rana pay the money to bike.

Past situation is, it is of no effect to consideration at all. It is defined as an act done before a contract is made. Consideration may be executed or executor but may not be past.[3] It is consideration that is already given or some act that is already performed and therefore can’t be induced by the other party’s thing, act or promise in exchange. Ex: X finished a work in January month for Y but Y said, he gives 500 Taka in February. This time X provides money for January month activates.

Future situation is, the act of consideration is yet to occur, a promise to do something in the future. When a consideration moves at a future data is future consideration. This is also called executor consideration. This time contract made now but result is coming in future. Ex: Rohim said with Kamal, if you will be complied my project work then I will give a book.


Well as determining whether consideration is valid on the grounds of being executed, the court will also seek to ensure that;

It is necessary that consideration should be according to the desire of the promise. No one should do or not do an act according to his own wishers or according to the wisher of other person. An act done without the desire of the promise will be voluntary act and as such will not be within the definition of consideration.[4] If anyone doesn’t follow the rule, contract is called unvalued. Ex: Mr. Rohim sees Kamal’s house is full by fire and this time rohim helped to kamal. But rohim wanted money but kamal doesn’t call to rohim so, this time kamal isn’t bound to give the money.

Consideration must be real. Consideration must have some value in the eye of law. It can’t be false, uncertain, impossible or fictitious. Court gives high value for contract and consideration. Ex: Rana said his girl friend, if you give me sun then I give 2 lac take. This type of agreement isn’t real. The contract explains ‘Promise or any other person can give consideration. But there is no mention in the act about giving consideration to the promise’.

Consideration must be legal and not immoral or opposed to public policy. If the object or consideration of an agreement is illegal, it can’t be enforceable by law. If the considerations illegal, immoral or opposed to public policy, in that case no contract based on that will be enforceable by law. Ex: A contract to pay money to a witness who has received an order from the count to appear at a trial.

It needn’t be adequate. If consent was freely given to the agreement, “an agreement to which the consent of the party is freely given is not void merely because the consideration is inadequate, but inadequacy of the consideration may be taken into by the court in determining the questions whether the consent of the promise was freely given”. Ex: X agrees to, he buy 100 plats at 200 Taka. X’s consent to the agreement was freely given. This agreement is the inadequacy of the consideration.


Contract out of love and affection, “If agreement made without consideration is void unless it is expressed in writing and registered under the law for the time being enforce for the registration of documents, and is made on account of natural love and affection between parties standing in a near relation to each other.” Ex: This time Rana allowance if any person find my mobile so, I gave 100 Taka only. Then Suha find the mobile and give it and take money. This is valid contract.

Executed gift is, “nothing in this section shall affect the validity, as between the donor and done, of any gift actually made”. Ex: X gifts her car to Y, and he must be complied written data. This time contract is valid.

Contract for appointing agent it must be, “No consideration is necessary to create an agency.” Ex: Rana give a take care authority to Sohan. This time sohan isn’t a owner, he is care taker.

Contract for repayment of time barred debt, “If agreement made without consideration is void, unless it is a promise in writing and signed by the person to be charged therewith or by his agent generally or specially authorized in that he half, to pay wholly or in part a debt of which the creditor might have enforce payment but for the law of limitation for suits.”[5] Ex: Rohim said his wife; he gives 500 take every day and this agreement is taken by the written and notification. But next rohim don’t pay money so, this time agreement is not right and this agreement consider in “love and affection” point of view.

An agreement made without consideration is void. It means that consideration is a must in all cases.[6]

Every promise may dispense with or remit, wholly or in part the performance of the promise made to him or may extend the time for such performance, or may accept instead of it any satisfaction which he thinks fit.”


This reason is insufficient to judge a commercial contract or promise enforceable as it lacks valid, valuable and legal basis for the reason. Also refer to valuable consideration. A good consideration doing something based on natural affection, generosity, love or moral duty. A good consideration must be maintains all rule. The necessary factors for consideration can be summed up as follows;

· There must be desire of the promisor.

· It should be real.

· Law must be reasonable.

· It mustn’t break rule.

· It mustn’t be immoral, non-legal, opposed to public policy.

· Its must maintain present, past and future.

· It’s stated to promise or any person.

There are conditions of good consideration. Every law must be following all this.


When a promisor makes a clear and definite promise on which the promise justifiable relies, the promisor is bound by the promise, even if it was insufficient to form the basis of a valid, legally binding contract.

Promissory maintain requires the following elements are, The promise was clear and definite, justifiable relied on the promise, substantial and of a definite character and will serve the best interests of justice. Consideration of some sort or other is so necessary to the forming of a contract, that an agreement to do or pay something on one side, without any compensation on the other, will not at law support an action and other activities.

Promises enforceable, despite the lack of consideration are, to pay a debt otherwise discharged by limitations, in rare cases and to charitable institutions. This situation is effect one contract and consideration.



1. Web address:, collected on February 25, 2012 at 8.00 am to 9.00 am.

2. Web address:, collected on February 25, 2012 at 8.00 am to 9.00 am.

3. Web address: www. & consideration, collected on February 25, 2012 at 8.00 am to 8.30 am.

4. Web address:, Retrieved on February 26, 2012 at 11.30 pm to 12.30 am.

5. Web address:, collected on February 29, 2012 at 8.30 pm to 9.00 pm.

6. Web address:…/consideration-every-contract, collected on February 29, 2012 at 8.30 pm to 9.00 pm.

7. Web address:, collected on February 29, 2012 at 8.30 pm to 9.00 pm.

8. Web address:, collected on February 29, 2012 at 10.00 pm to 10.30 pm.

9. Web address:, collected on March 01, 2012 at 10.00 am to 10.30 pm.


1. “Business Law”, Writer is “Mohammad Khalakurjaman”, Published by National University.

2. “Principles of Mercantile Law”, Writer is “Dr. Avtar Singh”. Easteran Book Company.

[1] See www.contract-law, collect in 29.03.12.

[2] Written by,

[3] CASE: Roscorla v Thomas [1842], CASE: Anderson v Glass [1869], CASE: Lampleigh v Braithwait (1615).

[4] Refer to M. Ahammer in Commercial Law or Business Law. Page no. 14.

[5] Section 25 (3), and Appa Rao Vs. Surya Prakash (1900) said.

[6] Show is,