What Do You Mean By Consideration Explain Essential Elements Of Consideration?

What is a valid consideration?

Consideration is some thing of value promised by one party to another while entering into a contract.

For a consideration to be valid there must be a promise from both sides.

This means that there must be a promise by one party against the promise of the other party..

Is a promise to pay consideration?

Generally, past consideration is not a valid consideration and has no legal value. Past consideration is consideration that has already flowed from the promisee to the promisor. … An act done before the giving of a promise to make a payment or to confer some other benefit can sometimes be consideration for the promise.

What are the types of consideration?

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

What is consideration and its rules?

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 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 is the purpose of consideration?

Consideration is—with some exceptions—a required element of a contract. It is the bargained-for giving up of something of legal value for something in return. It serves the purposes of making formal the intention to contract and reducing rash promise making.

What are the elements of 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 is meant by legally sufficient consideration?

Legally sufficient means that the consideration consists of either: A promise by a party to do something he or she is not legally required to do. A promise to refrain from doing something a party is allowed to do by law. A promise for a party to do something he or she would not otherwise have an obligation to do.

What are the three characteristics of consideration?

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

What are two exceptions to the rule requiring consideration?

One exception to the rule requiring consideration is promissory estoppel. In a bilateral contract the considerations for each promise is a return promise. In a unilateral contract, the consideration is one partys consideration is the promise and the other partys consideration is the act.

What is an example of consideration?

The definition of consideration is careful thought or attention or compassionate regard for someone or something. An example of consideration is someone deciding between two options for dinner. An example of consideration is someone bringing a friend dinner who just had a baby.

What are the three requirements of consideration?

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

Is a promise to pay sufficient consideration?

It may consist of a promise to perform a desired act or a promise to refrain from doing an act that one is legally entitled to do. In a bilateral contract—an agreement by which both parties exchange mutual promises—each promise is regarded as sufficient consideration for the other.

What do you mean by consideration?

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