UNDER SECTION 25 OF THE INDIAN CONTRACT ACT, 1872
BENCH: Mr. Justice Pearson; Mr. Justice Oldfield
FACTS:
- There was an agreement between plaintiff and defendant where the latter promised to pay a commission on articles sold through their agency in a bazar in which they occupied shops,
- At the instance of the collector, the plaintiff Durga Prasad, had assisted in the establishment of the market, erecting shops at his own expense and causing other persons to erect them, and causing persons to occupy such shops
- The plaintiff’s claim appeared were recognised by the district authorities, in 1864 the Municipal Committee made an order which declared him to be entitled to such share of such commission.
- The Plaintiff then entered into an agreement with the defendants in 1875 and in 1877 filed a suit for establishing the validity of the said agreement
ISSUE:
Whether there was a valid consideration on behalf of the plaintiff under s25 of the Contract Act of 1872
PLAINTIFF’s CONTENTIONS:
- That the plaintiff was entitled to a commission based on the agreement
- That some of the defendants refused to register it, others denied it’s execution
DEFENDANT’s CONTENTIONS:
- That the plaintiff had not done or promised the execution of doing anything
- The market place was constructed by the plaintiff to please the collector
- There was no consideration within the meaning of s25 of the Act of 1872
JUDGMENT:
The court rejected the contentions of the plaintiff. It was held that the shops were constructed at the desire of the collector and additionally there moved no consideration from the plaintiff under s25 of the act in order to consider it as a valid contract between the parties. Hence the appeal was dismissed with costs.
