What is consideration in relation to a contract?

What is consideration in relation to a contract?

n. 1) payment or money. 2) a vital element in the law of contracts, consideration is a benefit which must be bargained for between the parties, and is the essential reason for a party entering into a contract.

What is the relationship between consideration and promissory estoppel?

Promissory estoppel operates to ensure a party does not go back on their promise when another party has relied upon that promise. Clearly, consideration relates to the exchange of promises, therefore it becomes an extremely useful tool in providing a remedy for aggrieved parties.

What is economic duress explain with an example?

A party to a contract that threatens to cancel a contract unless the other party agrees to their demands is known as economic duress. This can especially occur if the other party has no other option but to accept the new demands. An example of economic duress is when a supplier increases the price of its product.

What is the relationship between duress and consideration?

The importance of duress replacing consideration is whereas an agreement without consideration is considered void, duress will render a contract voidable (and set aside).

What is consideration law?

Something bargained for and received by a promisor from a promisee. Common types of consideration include real or personal property, a return promise, some act, or a forbearance. Consideration or a valid substitute is required to have a contract.

What is doctrine of consideration?

The doctrine of consideration is one of the established doctrines within the common law of contract. In essence, the doctrine of consideration says that for a promise to be applicable; the promisee must give or promise something in return for that promise made.

Which of the following is a definition of consideration?

A promise to do something, a benefit to the promisor, or a detriment to the promisee.

What is the essential component of a consideration?

iv) Consideration may be paste, present or future. v) It must be Lawful vi) It must not be immoral or opposed to public policy. (i) Consideration must move at the desire of the promisor : It is the essential that consideration must move at the Desire of the promisor, but not at the instance of a third party.

What are the essential factors of consideration?

The rules or the necessary factors for consideration can be summed up as follows: (1)There must be desire of the promisor, (2) From the promisor or any other person, (3) Present, past or future, (4) Consideration need not to be adequate (5) Consideration must be lawful, (6) It must be real, (7) Reasonable, (8) Not …

What is the need for consideration?

When forming a contract, consideration is needed in order to make the agreement a formal, valid contract. This is one of the three main requirements besides mutual assent and a valid offer and acceptance. Consideration basically refers to the exchange of items or services of value.

What do you mean by future consideration?

Future Consideration is one in which one party makes a promise in exchange for the promise by the other side the performance of the obligation by each side to be made subsequent to the making of the contract the consideration is known as Future Consideration.

In what cases are the consideration and object of an agreement said to be unlawful?

Section 23 of the Indian Contract Act, 1872 – What considerations and objects are lawful and what not The consideration or object of an agreement is lawful, unless- It is forbidden by law; or is of such a nature that, if permitted, it would defeat the provisions of any law; or is fraudulent; or involves or implies …

When the consideration is unlawful the courts?

the Court regards it as immoral, or opposed to public policy. In each of these cases, the consideration or object of an agreement is said to be unlawful. Every agreement of which the object or consideration is unlawful is void. (a) A agrees to sell his house to B for 10,000 rupees.

What agreements are considered void?

An agreement to carry out an illegal act is an example of a void agreement. For example, a agreement between drug dealers and buyers is a void agreement simply because the terms of the contract are illegal. In such a case, neither party can go to court to enforce the contract.