Question: What Do You Mean By Consideration?

How do you define consideration?

Thus, consideration is a promise of something of value given by a promissor in exchange for something of value given by a promisee; and typically the thing of value is goods, money, or an act..

What is a good consideration?

Definitions of good consideration payment or something of value made in exchange for performance of a contract that is acceptable for a contract to be binding. “A non-compete clause cannot be enforced if it lacks good consideration.”

What are the 3 requirements of consideration?

Each party must make a promise, perform an act, or forbear (refrain from doing something).

What are the requirements for consideration?

Elements of consideration 1. A performance or a return promise must be bargained for. 2. A performance or return promise is bargained for if it is sought by the promisor in exchange for his promise and is given by the promisee in exchange for that promise.

What are included in consideration?

Consideration in a contract is the exchange of anything of value by each party. Most often, services or goods are exchanged or promised in a contract, though consideration may be whatever the parties agree to. Examples include: Money.

What do you mean by consideration explain essential elements of consideration?

Consideration is essential for a valid contract. It is the price for a promise – a quid pro quo. It is the value received as incentive for the promise. A contract without consideration is not binding on the parties. Blackstone defined consideration as “the recompense given by the party contracting to the other”.

What is a lawful consideration?

Lawful Consideration. As per Section 2(d) “When, at the desire of the promisor, the promisee or any other person has done or abstained from doing, or does or abstains from doing, or promises to do or to abstain from doing, something, such act or abstinence or promise is called a consideration for the promise ” [2]

What do you mean by consideration in contract?

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. … In a contract, one consideration (thing given) is exchanged for another consideration.

What are the six types of consideration?

Me too!1.An offer made by the offerer.2.An acceptance of the offer by the offeree.Consideration in the form of money or a promise to do or not do something.Mutuality between parties to carry out the promises of the contract.Capacity of both parties in mind and age.Legality of terms and conditions.

What are the rules of consideration?

The following are the Rules governing consideration in a contract.Consideration must move at the desire of the promisor.Consideration may Move front the Promisee or any other Person.Consideration may be Past, Present or Future.Consideration need not be Adequate.Consideration must not be Illusory but should be Real.

What are synonyms for consideration?

Synonyms of considerationaccount,advisement,debate,deliberation,reflection,study,thought.

What are the types of consideration?

Kinds of ConsiderationExecutory Consideration or Future Consideration,Executed Consideration or Present Consideration, or.Past Consideration.

Which of the following is an example of consideration?

Opening a door for someone who is carrying things is an example of consideration. S ld. WINDOWPANE is the live-streaming social network that turns your phone into a live broadcast camera for streaming to friends, family, followers, or everyone.

What are the exceptions to consideration?

Exceptions to the ‘No Consideration No Contract’ RuleNatural Love and Affection. … Past Voluntary Services. … Promise to pay a Time-Barred Debt. … Creation of an Agency. … Gifts. … Bailment. … Charity.

What are the characteristics of valid consideration?

Three Essential Characteristics of Valid Consideration:Legality.Adequacy.The possibility of performance.