Past consideration in indian contract law

What is past consideration in Indian law? It is the consideration which is made before the agreement. It is something which the promisee has already done at the desire of the promisor. For example- A rescues B. B promises to give him Rs.

B can give him the money, but that would not be considered as a past consideration but it would be by way of gratitude.

England proposes to remove this rule. See full list on blog. It should be ensured that the legal duty actually exists. But if a man who already has a legal obligation undertakes to do some. A promise to perform a pre-existing contractual obligation with a third party can be a valid consideration for another contract.

The point of conflict in these kinds of arrangements is regarding the presence of consideration for the promisor. This conflict was settled in the case of Shadwell vs Shadwell, where the plaintiff got engaged and his uncle wrote him a letter promising him to pay 1pounds throughout his lifetime. The jurists in the above case held that there was adequate consideration for the contract as it could be construed from the fact that it was made because of the engagement of his nephew.

Under these provisions, the person should be safeguarded from any further pay.

Moreover, marriage is of great interest to the near relatives. Consideration is not the same thing as motive or a mere desire. The requirement of consideration is vital and the contract could not be satisfied with just a moral obligation.

Motive induces a promise to be given. Similar holding was given in the case of Dwarampudi Nagarathnamma vs Kuruku Ramayya, where the Karta of a Hindu Undivided Family gifted his concubine a portion of the property beyond the cohabitation was a motive and not a consideration , and it should be considered as invalid because it was motivated by the desire to compensate for his past services. If the promissory note is neither genuine nor fraud then it is recoverable under the provision of this code, with interest.

The court said that mere denial of the passing of consideration does not make any defence. Something which is probable has to be brought on record. In Indian law , there are no such provisions but still, The general rule is the ex nudo pacto non-oritur action, which means that no right of action arises from the contract which is entered into without any consideration. Section of the Indian Contract Act.

The gift is of movables then it should be accompanied by its delivery. If the above conditions of gifts are fulfilled then lack of consideration would not affect the validity of these gifts. However, apart from the consideration, they could be questioned otherwise. Where the gift of the property was made by a registered deed and is attested by two witnesses, it was not allowed to be questioned on the ground that she was the victim of frau moreover, she was not able to establish it. Adequacy of the consideration means that the consideration which is paid is equal in value to the value for which it is paid.

Inadequate consideration must be distinguished from nominal consideration. Nominal consideration is deliberately given to make the contract effective but inadequate consideration is less than the amount promised. Although the act does not make any distinction between the nominal and inadequate consideration but it was made in the case of Midland Bank trust vs Green.

It could be past , present or future, and must only concern the parties to the contract and not any third party.

Moreover the consideration need not be adequate, however it should be valuable according to the parties of the contract. After a month B promises to compensate A for service rendered to him earlier. In other words, it is the price of the promise. An act of doing something – In this case, the consideration is inaffirmative or positive form. An Abstinence or forbearance means abstaining or refraining from doing something – In this case, the consideration is in negative form.

Example: A promises to B not to file a suit against him if he pays him Rs. A return promise – Example: A agrees to sell his horse to B for Rs. A’s promise to sell the horse, and A’s promise.

B’s promise to pay the sum of Rs. The reason why law only enforces those promises which are made for consideration is that gratuitous or voluntary promises are often made rashly and without due deliberation. Without consideration, the agreement may just become a gift. If A promises to pay B Rs. B neither doing or promising to do anything in return to compensate A for his money, A’s promise has no force of law.

It is a general rule that only the parties to a contract can sue or be sued. This rule is called theprivity of contract. The rule of Privity of contract means, that a relationship subsisting between two parties who have entered into contractual obligations.

Lord Justice Denninghas criticized the rule in a number of cases and has observed that “the privity principle has never been able to supplant another principle whose roots go much deeper. A person who is not a party to a contract cannot sue upon it even though the contract is for his benefit and he provided consideration. A contract cannot confer rights or impose obligations under it on any other person other than the parties to it.

Therefore, past consideration is the benefit that you. Understanding contract law past consideration is a topic that anyone entering into any form of contract needs to understand. Whether you are a business owner or an individual dealing with a relative, knowing when a contract can be enforced and at what point is very important to prevent either of the parties from getting burned in the process. As per Indian law past consideration too, is a consideration.

Case law : Sindha versus Abraham. Sindha is a lady taking care of minor Abraham, after the attaining of the majority I am started earning she demanded him to pay the money which was spent on him. Held: past consideration is also a valid consideration. In simple words, no consideration no contract. Hence, you can enforce a contract only if there is a consideration.

The term “ past consideration ” refers to an act that was performe or a promise that was made, before the new promise that is at issue and is being attempted to be enforced. Under the law , past consideration cannot constitute consideration for the new contract because it was not given for that new promise. A past consideration is, in. It is consideration that is already given or some act that is already performed and therefore cannot be induced by the other party's thing, act, or promise in exchange. As the first law essay company in the UK, we know how to get you great marks.

No one has more experience than us in getting you great marks. Our experts are on han to write you a 2:or 1st class answer to your law essay for your own personal use right now. English Law recognises privity of consideration.