Consideration is mostly always monetary, but can take other forms as well. It needs to be something of value to the individual making the promise. Therefore, it can also be an object or a service that the individual chooses.

What are the three possible forms of consideration?

what are the three requirements of consideration? 1) Each party must give an act, a forbearance, or a promise. 2) Each party must trade something of value or consideration. 3) Each party must trade what they contribute to the transaction for the other party’s contribution.

What are the types of consideration?

There are mainly three types of consideration:

What are the rules for consideration?

Legal rules regarding consideration

What is legally sufficient consideration?

Legally sufficient means that the consideration consists of either: A promise by a party to do something he or she is not legally required to do. A promise to refrain from doing something a party is allowed to do by law. A promise for a party to do something he or she would not otherwise have an obligation to do.

What are two exceptions to the rule requiring consideration?

One exception to the rule requiring consideration is promissory estoppel. In a bilateral contract the considerations for each promise is a return promise. In a unilateral contract, the consideration is one partys consideration is the promise and the other partys consideration is the act.

What are the six types of consideration?

There are six kinds of consideration in contract law.

Is future consideration valid?

2.3 Consideration may be past, present or future. 2.4 Consideration must be real. 2.1 Consideration must move at the desire of the promisor: In order to constitute legal consideration, the act or abstinence forming the consideration for the promise must be done at the desire or request of the promisor.

What are substitutes for consideration?

The doctrine of promissory estoppel is an alternative to the doctrine of consideration. It refers to a contract that cannot be withdrawn because one party acted on the other parties’ promise. In most cases, one party was harmed or served injustice because of the broken promise that they relied on.

What is a present consideration?

Present consideration is one in which one of the parties to the contract has performed his part of the promise, which Constitutes the consideration for the promise by the other side it is known as present consideration. Example : A lost his Bicycle, he makes an offer of the reward of Rs.

What is executory consideration explain with examples?

Executory Consideration- this form of consideration occurs when there are promises exchanged to perform tasks at a later time. An example is a contract in which you promise to deliver items to another person at a later date and he promises to pay you when they are delivered.

What are examples of legal considerations?

Common types of consideration include real or personal property, a return promise, some act, or a forbearance. Consideration or a valid substitute is required to have a contract.

What are the exceptions to the rule of consideration?

The exception to the rule of consideration squarely falls within the purview of the statute. Indian Contract Act in section 25, categorically provides for the three situations whereby the requirement of consideration ends. It is natural to love, affection, voluntary service and payment of the time-barred debt.

Which of the following is an example of consideration?

Opening a door for someone who is carrying things is an example of consideration.

What is the legal meaning of consideration?

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.

What does consideration mean legally sufficient?

For consideration to be legally sufficient, it cannot be something that a party is already obligated to do, the party must perform an act not ordinarily obligated to perform, or refrain from doing something one has a legal right to do. We also learned that consideration must be bargained-for.

Can a contract be made without consideration?

A contract without consideration is void because it is not legally enforceable. Consideration means that each party must provide something of value to the other party as designated by the contract terms.

What type of contracts do not require consideration?

Option contract: An option contract (i.e., a promise to hold an offer open for a set amount of time) usually does not need consideration, if the option is in a writing signed by the offeror, and recites that consideration has been paid for the option.

Which of the following is a valid consideration?

Which of the following are the legal requirements (i.e., essential elements ) of a valid consideration? (i) Consideration must be real and not illusory. (ii) Consideration must be of some value in the eyes of law. (iii) Consideration must be adequate. (iv) Consideration must be furnished by the promisee himself.

Which of the following is enforceable without consideration?

There are certain transactions that are enforceable without consideration. These include: – promises to pay a debt barred by the statute of limitations. – a promise to pay a debt that has been discharged in bankruptcy if certain requirements are met.

What are the essentials of a valid consideration?

Essential Elements of a Valid Consideration

What is a future consideration?

Future consideration: is what we promise to exchange, we exchange it in future. Suppose- A and B made a promise that, A will buy B’s car at cost $1000 after 15 days. And it is a future consideration. Past consideration: it means “What I have done before but I get payment right now”.

How far is it true that an agreement without consideration is void?

Explanation 2 : An agreement to which the consent of the promisor is freely given is not void merely because the consideration is inadequate; but the inadequacy of the consideration may be taken into account by the Court in determining the question whether the consent of the promisor was freely given.

How do I prove my promissory estoppel?

Requirements of a Promissory Estoppel

  1. Promisor made a significant promise to cause the promisee to act on it. …
  2. Promisee relied on the promise. …
  3. Promisee suffered significant damage by relying on the promise. …
  4. Fulfillment of the promise is the only way the promisee can be compensated.

What is the effect of the absence of consideration?

Lack of consideration means that one of the parties to a contract is not obligated in any way, while the other party holds all obligation to act. Generally, courts will not interfere with parties to a contract.

Which of the following is not an example of consideration?

Which of the following would not be considered an example of consideration? Performance of a duty you are obligated to do under the law is not good consideration. … Consideration may be a benefit to the promisor, a detriment to the promisee, a promise to do something, or a promise to refrain from doing something.