3. Payment of one hundred rupees extra in this case is not a good consideration as it was a promise to do something which the lawyer was legally bound to do. The case of Roscorla v Thomas (1842) illustrates that past conduct is not sufficient. For example, A agrees to sell his watch worth Rs. Basic Rule: Contract = Promise + Consideration 1. ontract: ^A promise or set of promises for the breach of which the law gives a remedy _ (R2K §1) a) Consideration (performance or a return promise) must be bargained for (R2K §71.1) (1) Performance = an act other than a promise, a forbearance or the 2. After a month B promised to pay Rs. Impossibility may be physical or legal. The consideration must be sufficient but need not be adequate. 100 extra to a lawyer for winning the suit. The act done at the desire of a third party or without the desire of the promisor cannot be a good consideration. In fact, it is also a kind of forbearance on the part of the creditor. A valid contract must include consideration for every party involved. Privacy Policy A. • Mutual promises constitute consideration for each other. Negative consideration implies forbearing some right. Here, A’s forbearance to sue B is a good consideration. The contract must include a bargain for the terms of the exchange. It is not necessary that there must be full return for the promise. 500 if two parallel straight lines meet each other. 5 for past consideration. ⇒Consideration must be made at time the contract is made, never before ⇒ Past consideration is where one party provides a promise or acts before the other party’s promise is given See, for example, Roscorla v Thomas (1842) ⇒ Exception to the 'past consideration' rule: Lord Scarman said in Pao On v Lau Yiu Long [1980] that “an act done before the giving of a promise to make a payment or to confer … B promises to pay Rs. Consideration must move at the desire of the promisor: The first important rule of consideration is that the act or forbearance must be done at the desire or request of the promisor. In both the cases, the consideration would not be a good consideration. Consideration must not be illegal, impossible, uncertain, ambiguous, fraudulent, immortal or opposed to public policy: The law does not compel anybody to do something illegal, impossible, immortal or opposed to public policy. The court held that the consideration was paid by the father on behalf of her uncle. (ii) Compromise or composition of claims: Compromising bonafide disputed claim is a good consideration. As per Section 10 and Section 25 of the Indian Contract Act, 1872, consideration is essential in a valid contract. Consideration in contract law is simply the exchange of one thing of value for another. PreserveArticles.com: Preserving Your Articles for Eternity, Difference between a Stranger to Consideration and A Stranger To Contract, Rules for performance of reciprocal promises. The required elements of consideration include: 1. A polished B’s car without any request from B. As such, pre­existing legal and contractual obligations cannot be regarded as good consideration. It means that under English Law, a stranger to consideration cannot file a suit to enforce his right. 5,000 to B if he does not report the matter to the police. 10. Rules Regarding Consideration. The consideration that is lawful is an essential element for the formation of the contract. A purchases goods by paying money in cash. If it is done unless a person offers to do something how can he be made liable to pay for that? Can one say that an inadequate consideration is an exception to the rule of consideration? A promises to pay Rs. 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