What are the types of consideration in contract law?

What are the types of consideration in contract law?

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

What are the different types of consideration?

There are six kinds of consideration in contract law.

• Executory (Future) Consideration.
• Executed (Present) Consideration.
• Past Consideration.
• Conditional Consideration.
• Unreal Consideration.
• Illegal Consideration.

What is consideration how many types of consideration are there explain?

According to Section 2(d) of the Indian Contract Act 1872, there are three kinds of Consideration, viz Past, Present and Future Consideration. In English law consideration May be present or future, but not past.

What is consideration under contract act?

Consideration is the price for which the promise of the other is bought, and the promise thus given for value is enforceable.” An agreement without consideration is a bare promise and exnudo pacto non aritio actio, i.e., cannot be held to binding on the parties. …

What is meant by consideration in contract law?

Something of value to which a party is not already entitled, given to the party in exchange for contractual promises. Consideration can take various forms, including a: Monetary payment. Promise to do something. Promise to refrain from doing something.

What is meant by consideration in contract?

consideration, in contract law, an inducement given to enter into a contract that is sufficient to render the promise enforceable in the courts. The technical requirement is either a detriment incurred by the person making the promise or a benefit received by the other person.

Do contracts require consideration?

In order for any agreement to be deemed legally binding, it must include consideration on the part of every person or company that enters the contract.

What is consideration in contract law PDF?

What are the 3 requirements of consideration?

There are three requirements of consideration: 1) Each party must make a promise, perform an act, or forbear (refrain from doing something). 2) Each party’s promise, act, or forbearance must be in exchange for a return promise, act, or forbearance by the other party.

How is consideration determined?

While the law allows the parties to decide an ‘adequate’ consideration for them, it must be real and have value in the eyes of law. While the Court will not consider inadequacy, it will look at it to determine if the consent was given by the party with free-will or not.

What types of consideration are in contract law?

Bilateral Contract: A contract where the parties exchange a promise for a promise,so the promise is the consideration.

Unilateral Contract: A contract where one party gives a promise and the other party performs an act.

Mutuality of Obligation: An agreement made by all the parties involved in a contract to be bound in some way.

What is unlawful consideration in contracts?

(1) An agreement by an agent to receive without his principal’s consent compensation from another for the performance of his agency is invalid.

(2) A promise by a trustee to do something in violation of his duty is unlawful

(3) A,who is the manager of a firm,agrees to pass a contract to X if X pay to A ` 2000 privately; the agreement is void.

Why is consideration important in contract law?

Consideration is one of the most important parts of a contract because it states why each party is joining the agreement. Consideration can be the exchange of money for products or services, or it can be a trade of one type of product for another type of product.

What is considered legal contract?

A contract is generally defined as a legal agreement between two or more parties. It usually requires an offer, an acceptance of the offer, and consideration in order to be legally binding. Who may legally enter into a contract is one question answered by contract law.