Consideration is an essential element in a contract. Subject to certain exceptions, an agreement is not enforceable unless each party to the agreement gets sometimes. This sometimes is called Consideration.
Section 2(d) When at the desire of the promisor, the promise or any other person has done or abstained form doing or does or abstains form doing, or promises to do or to abstain form doing something, such act or abstinence or promise is called a consideration for the promise.
Example: A agrees to sell a horse to “B” for Tk.1000/=. Here the horse is the Consideration for the Tk.1000/= and the TK.1000/= is the Consideration for the horse.
Classification of Consideration:
Consideration may be classified into three types as follows –
- Past Consideration
- Present Consideration
- Future Consideration
1. Past Consideration: When the Consideration of one party was given before the date of the promise, it is said to be past Consideration.
2. Present Consideration: Consideration which moves simultaneously with the promise, is called present Consideration or
3. Future Consideration: When the Consideration is to move at a future date, it is called Future Consideration or Executory Consideration.
Rules relating to Consideration:
- Consideration need not be adequate.
- It must be real.
- It must be paid according to the desire of the promisor.
- It may move either form the promisee or form any other person.
- It may be for past, present, Future.
- Performance of public duty not to be deemed as Consideration.
- It must be lawful –
- It may not be forbidden by law.
- It may not be defeated the provisions of any law
- It may not be given with fraud.
- It may not be such that involves injury to the person or property of other.
- It may not be opposite to public police.
Exceptions of the rule “No Consideration no Contract”
- Promise made on account of nature love and affection.
- Compensational promise for voluntary service.
- Promise to perform legal dury.
- Promise for repayment of the time barred debt.
- Promise for appointing agent.
- Contract of Agency
- Contract of Gift.
- Promise of remission or waiver of right.