Lawful Consideration and Object

1. Lawful Consideration and Object • ConsiderationIn the words of PULLOCK, “Consideration is the price for which the promise of the other is bought. According to section 2(d) of the indian contract act, “when at the desire of the promisor,the promise or any other person has done or abstains from doing or does or abstains from doing or promises to do or abstains from doing something such act or abstainance or promise is called a consideration for the promise. Essential elements of consideration • Consideration must move at the desire of the promisor(DURGA PRASAD VS. BALDEV AND KEDAR NATH VS. GAURI MOHAMMAD need to be mentioned here.) • Consideration may proceed from the promisee or any other person ( the case of chinnayya vs ramayya ) • Consideration may be promise to do something or to abstain from doing something • Consideration may be past, present or future • There must be some consideration,but consideration need not be adequate • Consideration must be legal,real or certain • Essential elements of consideration • Consideration must move at the desire of the promisor(DURGA PRASAD VS. BALDEV AND KEDAR NATH VS. GAURI MOHAMMAD need to be mentioned here.) • Consideration may proceed from the promisee or any other person ( the case of chinnayya vs ramayya ) • Consideration may be promise to do something or to abstain from doing something • Consideration may be past, present or future • There must be some consideration,but consideration need not be adequate • Consideration must be legal,real or certain

3. Agreement without consideration “void”- exceptions • Acc. To sec 25 the contract is said to be valid without consideration in the following circumstances. • Contracts made out of natural love and affection (the case of rajlakhi vs bhootnath AND venkant swami vs ranga swami need to be mentioned here) • Promise to pay a time barred debt • Promises made to compensate for voluntary services • Contracts of agency

4. 5. Gift and donation (Abdul aziz vs mazoom ali AND kedar nath vs Mohammed gauri )

5. Stranger to a contract and stranger to consideration The cases which need to be mentioned here are-: • DUNLOP TYRE LMT. VS. SELIFRIDGE • SAID VS. BUTT • CHINNAYYA VS. RAMAYYA

6. Exceptions to the rule • Where a trust is created • Family settlement ( Suppu Ammal vs. Subramanyan and Khawja Mohammad vs. hussani Begam) • In case of agency • Charge on specific immovable property • Assignee

7. CONSIDERATION AND OBJECT • UNLAWFUL CONSIDERATION AND OBJECT

8. CONDITIONS OF UNLAWFUL CONSIDERATION AND OBJECT • Act forbidden by law • If it is of such a nature that if permitted it would defeat the provisions of any law • If it is fraudulent • If it involves or implies injury to a person or property of another (the case of W.H. SMITH vs CLINTON HARRIS) • If the court regards it as immoral or opposed to public policy

9. Agreements opposed to public policy • Trading with alien enemy • Agreements interfering with course of justice • Agreements to stiffing prosecution • Agreements to change the the period limitations • Marriage brokerage agreements

10. 6.Agreements in restraint of parental authority (the case of Gindu vs Smt Ani Besant can be mentioned) 7.Agreement for procuring public office (the case of Swaminath vs Muttu Swami AND Parkinson vs college of Ambulance) 8. Agreements intefering with marital duties 9. Agreements tending to create monopolies 10. Agreements in restraint of personal freedom 11. Agreements of sale of degree or honours

11. 12. Agreements for improper promotion of litigation • Maintenance • Champterty (the case of Nuthaki Venkat Swami VS Katta Nagi Reddy AND Rampal vs neelkant) 13. Agreements tending to create interest opposed to duty 14. Other agreements

12. CONSIDERATION AND OBJECT UNLAWFUL IN PART • ADEQUACY OF CONSIDERATION