This document provides information about consideration in contracts. It defines consideration as something that is bargained for and exchanged between parties, serving as the reason for entering into a contract. Consideration is necessary for a contract to be enforceable. It can take several forms, such as money, property, a promise, an act, or refraining from an act. The document outlines some key rules for consideration, including that it must move at the promiser's desire and may come from the promisee or another party. It also discusses different types of consideration like executory, executed, and past consideration.
This document provides information about consideration in contracts. It defines consideration as something that is bargained for and exchanged between parties, serving as the reason for entering into a contract. Consideration is necessary for a contract to be enforceable. It can take several forms, such as money, property, a promise, an act, or refraining from an act. The document outlines some key rules for consideration, including that it must move at the promiser's desire and may come from the promisee or another party. It also discusses different types of consideration like executory, executed, and past consideration.
This document provides information about consideration in contracts. It defines consideration as something that is bargained for and exchanged between parties, serving as the reason for entering into a contract. Consideration is necessary for a contract to be enforceable. It can take several forms, such as money, property, a promise, an act, or refraining from an act. The document outlines some key rules for consideration, including that it must move at the promiser's desire and may come from the promisee or another party. It also discusses different types of consideration like executory, executed, and past consideration.
SUBJECT : LEGAL ASPECT OF BUSINESS SEMINAR TOPIC : CONSIDERATION CONSIDERATION
Consideration is the central concept in the common
low of contract and is required , in most cases, for contract to be enforceable . Consideration is the price one pays for another’s promise. It can take a number of forms : money , property , a promise, the doing of an act , or even refraning from doing an act . • Payment or money , a vitual element in the low of Contracts , consideration is a benefits which must be bargained for between the parties , and is the essential reason for a party entering into contract…In a Contract, one consideration. • (thing given) is exchanged for another consideration . Not doing an act can be consideration, such as “I will pay you $1000 not to build a road next to my fence “ . Sometimes consideration, is “ nominal “ meaning it is started For from only , such as $10 as consideration for conveyance of title, which is used • To hide the true amount being paid. Contract may become unenforceable or rescindable ( undone by rescission) for “ failure of consideration when the intended , is damaged or disroybed, or performance is not made properly. ( as when the mechanic does not make the car run Properly acts) . Which are illegal or so immoral that they are against established public policy can not serve as consideration. EXAMPLE • Prostitution, gambling were outword , hiring some on break a Skater’s knee or including some one to breach an agreement ( talk someone into backing out of promise). DEFINITION OF CONSIDERATION In common parlance, consideration refers to something paid to someone in return for something else. In legal terminology which has to be paid by the promise to the promiser for doing or not doing an act . Consideration is necessary for a valid contract, in the absence of which a promise cannot be enforceable. • It may in here some benefit, right or less determint , or obligation causing to the promise. • Therefore, consideration can be a promise or performance of an act which the parties to the Contract exchange with on another. It is the base of a Contract. RULES OF CONSIDERATION • There are several rules regarding the consideration, discussed as under . • 1. Must move at promiser’s desire :- • Consideration must be provided by the promisee or any other party , as per the desire or request of the promiser. 2. May proceed from promisee or any other party :- The consideration may more out from the promisee or any other party . Here the word any oher person means stranger , who is not a party to the Contract . 3 . Executed and Executory :- Who one party to a contract has performed his/her • Part , the consideration said to be excused for that property. While the oher has just promised to perform it, the consideration is said to be excutory for that party. • 4 . Must be real :- • It has to be real , certain and something of value. It should not be illusory vages and legally or Physically impossible. • 5 . Must be lawful :- • It has to be lawful and moral and it must not violate any public policy, otherwise it will not be regarded as valid consideration. TYPES OF CONSIDERATION Three are mainly three types of consideration: - 1 ..Executory or future consideration :- Executory consideration, as the name suggests is one which is yet to be performed. This means that the promise or obligation wi be performed in future. • 2 . Executory of present consideration:- • Executed consideration, means the one which is concurrently provided. When the promise is made . Meaning that the act which amounts to consideration is fully performed. • Past consideration:- • Past consideration refers to the formerly performed act or fforbearance which amount to consideration has already been provided before the promise is given . •Thank you