consideration

As per me, Consideration must be of value (at least to the parties), and is exchanged for the performance or promise of performance by the other party and such performance itself is a consideration.

In layman's; language "Something in return for any favor done.  Search in google as consideration is the main ingredient of a  valid contract and a contract without consideration is void ab initio.

Hi,

In an agreement, mere intention to be bound is not enough– consideration also needs to be proved

Consideration plays an important role to check whether parties had deliberated and formed the relationship. The requirement of consideration is found in countries modeled on the common law tradition

Section 2d of the Indian Contract Act states that when, at the desire of the promisor, the promise 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. Thus an act, abstinence or promise at the desire of a third party is not covered.

Consideration must move from promisee or any other person.

When consideration consists of promises to be fulfilled in the future, each promise is the consideration for the other. These promises are called reciprocal promises. Both sides have rights and obligations in such instances. Consideration is termed as executory in nature.

An agreement without consideration is void unless:

Past Consideration - It is a promise to compensate, wholly or in part, a person who has already voluntarily done something for the promisor, or something which the promisor was legally compellable to do(Raja of Venkatagiri vs Krishanayya)

Hope this solves your query,

Regards,

Archit

What are the facts? What is the context?

In the legal system, the term consideration in contract law refers to something of value given to someone in return for goods, services, or some other promise.  A valid contract must include consideration for every party involved. In simple terms, consideration is the basic reason a party enters into a legal contract. To explore this concept, consider the following consideration definition.

Elements of Consideration

In order for a contract to be considered valid and enforceable by the courts, three elements of consideration must be met. If one or more of these elements are missing, the contract lacks the necessary requirements, it could potentially be deemed invalid by the court. The required elements of consideration include:

1. The contract must include a bargain for the terms of the exchange. This means there must be something that is worth bargaining over to both the parties.
2. There must be a mutual exchange between the parties. In simple terms, all parties involved must benefit from the contract.
3. The exchange in the contract must be something of value.

In addition to the elements of consideration, a contract must contain certain other elements to be enforceable. While these requirements vary by state, generally these requirements include:

• An intent by both parties to enter into the agreement
• The subject matter must be legal
• One party must make an offer
• The other party must accept an offer