Consideration is characterized as “something of worth which makes the gatherings go into an agreement or understanding as per which they have to trade their administrations”. Consideration is a standout amongst the most essential components needed to frame an agreement and make it substantial according to law. It is a guarantee to perform the obliged errand or coveted act. Consideration must be profited, which is lawfully adequate, or a guarantee to do or not to do something.
A Consideration must be haggled by the getting party with a specific end goal to make it enforceable under law. As indicated by a reciprocal contract, both the gatherings get included into an understanding where they trade guarantees to be satisfied commonly. Then again, as per a one-sided contract, it is taken as execution by one gathering and a guarantee to be satisfied by another gathering. Consideration ought to be effortlessly decided and it should not be performed due to love or friendship between the two gatherings included. An agreement without thought is not enforceable under the law. No Consideration is given on the off chance that some person was at that point legitimately urged to do as such.
Types of Consideration
(i). Past Consideration-When any task is performed before the date of the agreement at the eagerness of the promisor, it is known as past thought. This past thought is substantial just if something is finished by the guarantee at the yearning of the promisor.
(ii). Present Consideration– When the tasks are performed at the same time by both the gatherings included in the agreement, it is known as Present Consideration. It is otherwise called executed consideration.
(iii). Future Consideration-When the consideration should be given by both the gatherings included at a future date, it is known as Future Consideration. It is otherwise called agent consideration.
Principles of Consideration
- Consideration ought to be done when the promisor wants if it is moved without the solicitation of the promisor, it is invalid.
- Consideration can be moved by the guarantee or whatever other individual it implies that the demonstration may be performed by the guarantee himself or some other individual for his sake.
- Consideration must be genuine and not taking into account illusions-Consideration must have some worth according to law and it should not be deceptive.
- Consideration must not include a demonstration, which the promisor is legitimately bound to do-A thought is great when the promisor is not lawfully bound to do something.
- Consideration must be legitimate, conceivable, and certain; mortal-It should not force to do something, which is impractical, illicit or restricted to people in general strategy.
- Consideration may not be satisfactory the law does not protest if a consideration of the agreement is insufficient.
Consideration should be so as to make an agreement substantial according to law however it may not be mandatory if
- It is a composed agreement enrolled out of love and fondness between the gatherings.
- When a promisor does something intentionally to remunerate an individual.
- In instance of installment of a period banned obligation or guarantee to make installment.
- In instance of giving blessings.
- When a making of organization is included.