Consideration is an essential element in a contract. Subject to certain exceptions, an agreement is not enforceable unless each party to the agreement gets sometimes. This sometimes is called Consideration.
Section 2(d) of the contract Act 1872 defines consideration as when at the desire of the promisor, the promise or any other person has done or abstained form doing or does or abstains form doing, or promises to do or to abstain form doing something, such act or abstinence or promise is called a consideration for the promise.
In the English case currie vs. Misa (1875) defined consideration as some right, interest, profit or benefit accruing to one party or some forbearance, detriment, loss or responsibility given suffered or undertake by the offer.
Example: A agrees to sell a horse to “B” for Tk.1000/=. Here the horse is the Consideration for the Tk.1000/= and the TK.1000/= is the Consideration for the horse.
Classification of Consideration
Consideration may be classified into three types as follows …..
- Past Consideration
- present Consideration
- Future Consideration
Past Consideration: When the Consideration of one party was given before the date of the promise, it is said to be past Consideration.
Present Consideration: Consideration which moves simultaneously with the promise, is called present Consideration or
Future Consideration: When the Consideration is to move at a future date, it is called future Consideration or Executory Consideration.
Rules relating to Consideration:
- Consideration need not be adequate.
- It must be real.
- It must be paid according to the desire of the promisor.
- It may move either form the promise or form any other person.
- It may be for past, present, Future.
- Performance of public duty not to be deemed as Consideration.
- It must be lawful.
- It may not be opposite to public police.
Exception of the rule “No Consideration no contract”
- Contract made on account of nature love and affection.
- Compensational promise for voluntary service.
- Contract for repayment of the time barred debt.
- Contract for appointing agent.
- Contract for Bailment.
- Contract for Gift
- Contract of remission or waiver of right.