DR.

RAM MANOHAR LOHIYA NATIONAL

LAW UNIVERSITY, LUCKNOW

FINAL DRAFT

Critically analyze the various aspects of

consideration in a contract.
Submitted for the project work undertaken in the partial fulfilment of
[Link]. (Hons.) 5 years integrated course of Dr. Ram Manohar
Lohiya NLU, Lucknow.

Submitted To: - Submitted By: -

Dr. Manoj Kumar Tushar Anand Singh

Assistant Professor (Law) Enrolment No. - 180101151

Dr. RMLNLU, Lucknow Semester II

1
 ACKNOWLEDGEMENT

I am most profoundly grateful to my teacher Prof. Dr. Manoj Kumar for providing me this

wonderful opportunity to work upon this project after doing which we feel to have

enlightened ourselves in this regard and for his precious time he spent guiding us for the

completion of this project.

I also thank the members of the library staff for their cooperation in making available the

books and magazines and allowing us to access the internet even during their free time and

whenever we required to do so.

Last but not the least I would also like to thank my friends. It was only because of their

excellent help that I have been able to complete my project.

Tushar Anand Singh

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 TABLE OF CONTENTS
1. Introduction……………………………………………………………….4

2. Essential Element of Contract…………………………………………….6

3. Consideration……………………………………………………………..8

4. Rules of consideration…………………………………………………….9

5. Importance of consideration……………………………………………..10

6. Essential of valid consideration………………………………………….11

7. Exceptions to consideration………………………………………….......12

A. Natural love and affection [Sec. 25(1)]…………………………….………………...14

B. Compensation for services rendered [Sec. 25(2)]………………….......................15

C. Time-barred debt [Sec. 25(3)]…………………………………...............................16

D. Completed gifts [Exp.1 to Sec. 25]……………………………………………….…..17
E. Agency (Sec. 185)………………………………………………………………….......17
F. Remission (Sec. 63)………………………………………………………………..…..17
 Acceptance of less sum…………………………………………………..…….18
 Waiver………………………………………………………………….….…...18

8. Difference between Indian law & English law regarding

consideration……………………………………………………………....20

9. Conclusion…………………………………………………………...….21

Bibliography………………………………………………………..……....22

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 1) Introduction

Something of significant worth given by the two parties to an agreement that initiates them to

go into the consent to trade mutual performances is consideration.

Section 25 of the Indian Contract Act opens with the declaration that “an agreement made

without Consideration is void…” In England also “promises without Consideration are not

enforced, because they are gratuitous….” In Rann v Hughes 1case Lord Chief Baron

SKYNNER observed:

“It is undoubtedly true that every man is by law of nature bound to fulfill his engagements. It

is equally true that the law of the country supplies no means, nor affords any remedy, to

compel the performance of an agreement made without sufficient consideration”.

“Contract is a agreement with explicit terms between at least two people or substances in

which there is a promise to do something in return of a profitable benefit known as

consideration. Since the law of agreements is the core of most business dealings, it is one of

three or four most huge area of lawful concern and can include minor departure from

conditions and complexities. The presence of Contract requires the following components:”

a) An offer;

b) An acceptance of that offer which results in a meeting of the minds;

c) A promise to perform;

d) A valuable consideration (which can be a promise or payment in some form);

e) A time or event when performance must be made;

f) Terms and conditions for performance, including fulfilling promises;

1
Rann v Hughes [1778] 4 Bro PC 27.

4
consideration is a basic component for the development of an agreement. It might comprise

of a promise to play out a desired act or a promise to refrain from doing an act that one is

lawfully qualified to do. Consideration implies something as a byproduct of the promise. It

might be either some advantage presented to one party or some impediment endured by the

other. “In a bilateral contract-an agreement by which the two parties trade common promises-

each promise is viewed as adequate consideration for the other. In a unilateral contract, an

agreement by which one party makes a promise in return for the other's execution, the

Performance is Consideration for the promise, while the promise is Consideration for the

performance.”

Consideration must have an esteem that can be objectively decided. A promise, for instance,

to make gift or a promise of love or warmth isn't enforceable in light of the abstract idea of

the promise.

At the point when at the desire of the promisor, the promisee or some other individual has

done or kept away from doing, or portion or refrains from doing, or promises to do or to

swear off doing, something, such act or restraint or promise is known as a Consideration for

the promise. It is an act, forbearence or promise done or given at the request of the promisor

by the promise or some other individual. While this section defines Consideration, the

prerequisite of Consideration as a basic component of contract is referenced in sec.- 25 of the

Act; which renders an agreement without Consideration void, subject to exemptions in that.

According to BLACKSTONE consideration has been defined as “Consideration is the

recompense given by the party contracting to the other”. In the words of PALLOCK,

“Consideration is the price for which the promise of the other is bought, and the promise thus

given for value is enforceable”.

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 2) Essential elements of a contract

An agreement must contain four basic components to be viewed as a contract. If any one of

the four components are missing in an agreement, then the agreement will be legally void.

A. Offer

There must be a clear and obviously expressed offer to accomplish something. For instance:

A citation by sub-contractor to the primary contractor and an offer to lease. An offer does

exclude ball park estimates, demands for proposals, expressed interest, or letters of intent.

An offer will lapse:

 when the time for acceptance expires;

 if the offer is withdrawn before it is accepted; or

 after a reasonable time in the circumstances (generally the greater the value of the

contract, the longer the life of the offer).

B. Acceptance

“Just what is offered can be accepted. This implies that the offer must be accepted precisely

as offered without conditions. In the event that any new terms are recommended this is

viewed as a counter offer which can be accepted or rejected.”

“There can be numerous offers and counter offers before there is an agreement. It isn't vital

who makes the last offer, it is the acceptance of that offer that finishes the exchanges by

forming the terms and conditions of the agreement.”

Acceptance of an offer can be given verbally, recorded as a hard copy, or deduced by activity

( actions) which unmistakably show acceptance (execution of the agreement). Regardless, the

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acceptance must conform with the method prescribed by the offerer for it to be legally

binding.

C. Intention of legal consequences

“An agreement necessitates that the parties agree to go into a lawfully binding agreement.

That is, the parties to the agreement must expect to make legitimate relations and must

comprehend that the agreement can be implemented by law.”

The expectation to make legitimate relations is assumed, so the contract doesn't need to

explicitly express that you comprehend and plan lawful outcomes to follow.

“If the parties to a contract decide not to be legally bound, this must be clearly stated in the

contract for it not to be legally enforceable.”

D. Consideration

All together for an contract to be binding it must be backed by profitable consideration. In

other words, one party promises to accomplish something as an end-result of a promise from

the other party to give a benefit of significant worth (the consideration)

Consideration is the thing that each party provides for, to one another as the benefit for the

other's promises. Typically the consideration is the payment of cash however it need not be; it

tends to be anything of significant worth including the promise not to do something, or to

avoid practicing some right.

The payment necessarily shouldn't be a fair payment. The courts won't intercede where one

gathering has made a hard deal except if misrepresentation, duress or unconscionable lead is

included.

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 3) Consideration

In section 2(d) of the Indian Contract Act consideration is defined as:

“When, at the desire of the promisor, the promisee or any other person has done or abstains

from doing or does or abstains from doing, or promises to do or abstain from doing,

something, such act or abstinence is called a consideration for the promise.”

“……………………………………………………………………………………………………………..

In contract law consideration is concerned with the bargain of the contract. A contract is

based on an exchange of promises. Each party to a contract must be both a promisor and

a promisee. They must each receive a benefit and each suffer a detriment. This benefit or

detriment is referred to as consideration.”

“…………………………………………………………………………………………………

Consideration must be something of value in the eyes of the law - (Thomas v

Thomas)2. This excludes promises of love and affection, gaming and betting etc. A one sided

promise which is not supported by consideration is a gift. The law does not enforce gifts

unless they are made by deed.”

“…………………………………………………………………………………………………

Whilst the common law strictly adheres to the requirement of consideration (although in

some instances the courts seem to go to some lengths to invent consideration eg Ward v

Byham 3, Williams v Roffey Bros4equity will, in some instances, uphold promises which are

not supported by consideration through the doctrine of promissory estoppel.”

2
Thomas v Thomas [1842] 2 QB 851.
3
Ward v Byham [1956] 1 WLR 496.
4
Williams v Roffey Bros [1990] 2 WLR 1153.

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 4) Rules of consideration

Consideration must not be past: Consideration provided in past is not valid as a

consideration for forming new contracts. If the act has been done before any promise is made,

it is called“past consideration. Consideration, being the price for the promise, should be given

in response to and as an inducement for the promise.”In Re McArdel (1951) case it was

“held that, the promise to make payment came after the consideration had been performed

therefore the promise to make payment was not binding. Past consideration is not valid.

“………………………………………………………………………………………………...

Consideration must be sufficient but need not be adequate: There is no requirement that

the consideration must be market value, providing something of value is given in exchange

for a promise would be valid.” In Chappel v. Nestle5 case court held that, “the wrappers did

form part of the consideration as the object was to increase sales and therefore provided

value. The fact that the wrappers were simply to be thrown away did not detract from this.

Therefore Chappel were granted the injunction and Nestle could not sell the records as they

had not complied with the notice requirements under s.8.”

Consideration must move from the promisee: If a person other than the promisee is to

provide the consideration, the promisee cannot enforce the [Link] Tweddel v.

Atkison6case the claim made by the groom was failed because groom was not party to

theagreement as the agreement was made by the father of the groom and the consideration

did not move from him. Therefore he was not entitled to enforce the contract.

“An existing public duty will not amount to valid consideration: Where a party has a

public duty to act, this can not be used as consideration for a new promise.” In Collins v

5
Chappel v. Nestle [1960] AC 87.
6
Tweddel v. Atkison [1861] EWHC QB J57].

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Godefrey7 case court held that,“Collins was under a public duty to attend court due to the

subpoena. Where there exists an existing public duty this cannot be used as consideration for

a new promise. Godefrey was not required to pay him.”

“………………………………………………………………………………………………...

An existing contractual duty will not amount to valid consideration: If a party has an

existing contractual duty to do an act, this act cannot be used as consideration for a new

promise. Acts that a party is required to perform as an existing legal obligation is not

considered a valid consideration. In Stilk v Myrick case8. The claimant was under an existing

duty to work the ship back to London and undertook to submit to all the emergencies that

entailed. Therefore he had not provided any consideration for the promise for extra money.

Consequently he was entitled to nothing.”

“Part payment of a Debt: Part payment of a debt is not valid consideration for a promise to

release the debt in [Link] Pinnel's Case, the claimant was entitled to the full amount even if

they agreed to accept less. Part payment of a debt is not valid consideration for a promise to

forebear the balance unless at the promisor's request part payment is made either:”

a) before the due date,

b) with a chattel,

c) to a different destination.

5) Importance of consideration

“Consideration is the foundation of ever contract. The law insists on the existence of

consideration if a promise is to be enforced as creating legal obligations. A promise without

7
Collins v Godefrey [1831] 1B & Ad 951.
8
Stilk v Myrick [1809] EWHC KB J58.

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consideration is null and void. It is called a naked promise”or "Nudum Pactum." “Thus if A

promise to pay B Rs. 1000 without anything in return, this constitute a bare promise and

gives no right of action.”

“Sir William Anson has brought out the importance of consideration thus, "offer and

acceptance brings the parties together, and constitute an outward semblance of a contract, but

most systems of law requires some further evidence of the intention of the parties and in

default of such evidence, refuse to recognize an obligation.' This further evidence of the

intention of the parties is supplied by consideration which is one of the element of a valid

contract. Section 25 of the Indian contract Act supports this contention and provides that

agreement without consideration is void.”

6) Essentials Of Valid Consideration

1. “Consideration must move at desire of the promiser. An act or abstinence must have been
done at the desire of the promisor only. Any act performed at the desire of the third party
cannot be valid consideration.”

2. “From the promisor or any other person. To constitute a valid consideration their must be
some consideration, it immaterial who furnished it. Consideration can be furnished by
contract but stranger to the consideration can sue, because he is party to that contract,
though consideration has been given by some third person.”

3. “Consideration may be past, present or future.

(a) Past Consideration:-A consideration for the act done in past is a past consideration. Past
consideration valid in Indian Contract Act, but it is no consideration in English Law.
(b) Present Consideration:-When both the parties are ready to move consideration at the
same time, it is a present consideration.
(c) Future Consideration:-When a party promises to or abstain from doing something in
future, it is a future consideration.”

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4. “Consideration need not to be adequate. Law only requires the presence of consideration in
a valid contract, it adequacy is not required in the Act.”

5. “Consideration must be real. Definition of consideration clearly states "Something in

return" is consideration which must be of some value in the eyes of law, though need not be
adequate. It should not be uncertain, illusory or impossible.”

6. “Consideration must be lawful. In valid contract it is necessary that the consideration

should be lawful, otherwise it will become void and unenforceable.”

7) Exceptions To Consideration

Section 25 of the Indian Contract Act-

"Agreement without consideration, void, unless it is in writing and registered or is a promise

to compensate for something done or is a promise to pay a debt barred by limitation [Link]

agreement made without consideration is void, unless—"

(1) “It is expressed in writing and registered under the law for the time being in force for the

registration of 1[documents], and is made on account of natural love and affection between

parties standing in a near relation to each other; or unless-”

(2) “it is a promise to compensate, wholly or in part, a person who has already voluntarily

done something for the promisor, or something which the promisor was legally compellable

to do; or unless.”

(3) “It is a promise, made in writing and signed by the person to be charged therewith, or by

his agent generally or specially authorized in that behalf, to pay wholly or in part a debt of

which the creditor might have enforced payment but for the law for the limitation of suits. In

any of these cases, such an agreement is a contract.”

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“Explanation 1.—nothing in this section shall affect the validity, as between the donor and

donee, of any gift actually made.”

“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. Illustrations”

(a) “A promises, for no consideration, to give to B Rs. 1,000. This is a void agreement. (a) A

promises, for no consideration, to give to B Rs. 1,000. This is a void agreement.”

(b) “A, for natural love and affection, promises to give his son, B, Rs. 1,000. A puts his

promise to B into writing and registers it. This is a contract. (b) A, for natural love and

affection, promises to give his son, B, Rs. 1,000. A puts his promise to B into writing and

registers it. This is a contract.”

(c) “A finds B’s purse and gives it to him. B promises to give A Rs. 50. This is a contract. (c)

A finds B’s purse and gives it to him. B promises to give A Rs. 50. This is a contract.”

(d) “A supports B’s infant son. B promises to pay A’s expenses in so doing. This is a

contract.”

(e) “A supports B’s infant son. B promises to pay A’s expenses in so doing. This is a

contract.”

(f) “A owes B Rs. 1,000, but the debt is barred by the Limitation Act. A signs a written

promise to pay B Rs. 500 on account of the debt. This is a contract. (e) A owes B Rs. 1,000,

but the debt is barred by the Limitation Act. A signs a written promise to pay B Rs. 500 on

account of the debt. This is a contract.”

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“Every agreement to be enforceable at law must be supported by valid consideration. An

agreement made without consideration is void and is unenforceable except in certain cases.

Section 25 specifies the cases where an agreement though made without consideration will be

valid. These are as follow:”

A. Natural love and affection [Sec. 25(1)]

“An agreement though made without consideration will be valid if it is in writing and

registered and is made on account of natural love and affection between parties standing

in a near relation to each other. An agreement without consideration will be valid

provided:”

(a) it is expressed in writing;

(b) it is registered under the law for the time being in force;

(c) it is made on account of natural love and affection;

(d) it is between parties standing in a near relation to each other.

All these essentials must be present to enforce an agreement made without

consideration.

In the case of Rajlukhy Dabee v Bhootnath Mookerjee:9

The defendant promised to pay his wife a fixed sum of money every month for her

separate residence and maintenance, the agreement was contained in a registered

document which mentioned certain quarrels and disagreements between the two.

“The Calcutta High Court refused to regard the agreement as one covered by the

exception. The court could find no trace of love and affection between the parties

whose quarrels had compelled them to separate.”

9
Rajlukhy Dabee v Bhootnath Mookerjee AIR 1981 Cal 157.

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 In the case of Bhiwa v Shivaram:10

“A sued B, his brother, for share in certain lands. But the suit was dismissed as B

solemnly affirmed that the property was not ancestral; B then agreed by registered

writing to give A one-half of the same property. The present suit was brought to

obtain that share. Although B admitted that the relationship of the brother had been

strained during recent times, the court held that “these are exactly the cases where

Section 25(1) should be held to apply”. The defendant had such natural love and

affection for his brother that he was ready to sacrifice his share of the property to

reconcile with his brother.”

B .Compensation for services rendered [Sec. 25(2)]

“An agreement made without consideration will be valid if it is a promise to compensate

wholly or in a part a person who has already voluntarily done something for the promisor or

something which the promisor was legally compellable to do. To apply this rule, the

following essentials must exist:”

(a) The act must have been done voluntarily;

(b) for the promisor or it must be something which was the legal obligation of the promise,
(c) the promisor must be in existence at the time when the act was done;
(d) the promisor must agree now to compensate the promise.

“A promise made after majority to pay for goods supplied to the promisor during minority”

falls within this exception.11

Earlier the Bombay High Court had held in Sindha Shri Ganapatsinghji v Abraham that

“services rendered at the desire of the minor expressed during minority and continued at the

10
Bhiwa v Shivaram [1899] 1 BOM LR 495.
11
Karam Chand v Basant Kaur 1911 Punjab Rec No 31, p. 91.

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same request after his majority form a good consideration for a subsequent express promise

made by him in favor of the person who rendered him those services.”

C. Time-barred debt [Sec. 25(3)]

“A promise to pay a time-barred debt is also enforceable. But the promise must be in writing

and be signed by the promisor or his agent authorized in that behalf. The promise may be to

pay the whole or part of the debt. An oral promise to pay a time-barred debt is

unenforceable.”

In the opinion of the Madras High Court “the words by the person to be charged therewith’ in

section 25(3) are wide enough to include the case of a person who agrees to become liable for

the payment of a debt due by another and need not be limited to the person who was indebted

from the beginning. 12”

“The promise to pay referred to in section 25(3) should be expressly mentioned and cannot be

held to be sufficient if the intention to pay is unexpressed and has to be gathered from a

number of circumstances. There must be a distinct promise to pay before the document can

be said to fall within the provisions of the section”

In Daulat Ram v Som Nath 13the tenant scribbled on the back of the promissory note that the

rent could be collected by cash or cheque, but mentioned no amount. This was not considered

to be a promise to pay a time-barred debt.

Time-barred debt requires an explicit promise to pay the debt, mere acceptance of the debt

does not lead to a time-barred debt.

12
Puliyath Govinda Nair v Prekalathil Achutan Nair AIR 1940 Mad 678.
13
Daulat Ram v Som Nath AIR 1981 Del 354.

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 A. Completed gifts [Exp. 1 to Sec. 25]

Explanation 1 to section 25 provides that the rule 'No consideration, No contract' shall not

affect validity of any gifts actually made between the donor and the donee. “Thus if a person

gives certain properties to another according to the provision of the Transfer of Property Act,

he cannot subsequently demand the property back on the ground that there was no

consideration.”

B. Agency (Sec. 185)

“There is one more exception to the rule. IT is given in section 185 which says that no

consideration is needed to create an agency.”

F. Remission (Sec 63)

No consideration is required for an agreement to receive less then what is due. This is called

remission in the law.

“ Promisee may dispense with or remit performance of promise.—Every promisee may

dispense with or remit, wholly or in part, the performance of the promise made to him, or

may extend the time for such performance,1or may accept instead of it any satisfaction which

he thinks fit. —Every promisee may dispense with or remit, wholly or in part, the

performance of the promise made to him, or may extend the time for such performance,1or

may accept instead of it any satisfaction which he thinks fit.” Illustrations

(a) “A promises to paint a picture for B. B afterwards forbids him to do so. A is no longer

bound to perform the promise. (a) A promises to paint a picture for B. B afterwards forbids

him to do so. A is no longer bound to perform the promise.”

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(b)A owes B 5,000 rupees. A pays to B, and B accepts, in satisfaction of the whole debt,

2,000 rupees paid at the time and place at which the 5,000 rupees were payable. The whole

debt is discharged. (b) A owes B 5,000 rupees. A pays to B, and B accepts, in satisfaction of

the whole debt, 2,000 rupees paid at the time and place at which the 5,000 rupees were

payable. The whole debt is discharged."

(c) “A owes B 5,000 rupees. C pays to B 1,000 rupees, and B accepts them, in satisfaction of

his claim on A. This payment is a discharge of the whole claim.2 (c) A owes B 5,000 rupees.

C pays to B 1,000 rupees, and B accepts them, in satisfaction of his claim on A. This payment

is a discharge of the whole claim.”

Acceptance of less sum

The acceptance of less sum of money where more is fue, is a good discharge of the whole ogf

the liability. The Supreme Court decision in Kapurchand Godha v Mir Nawab Himayatlikhan

Azamjah 14illustrated this.

Waiver
To dispense with means that the party entitled to claim performance may waive it. The

Supreme Court already laid down that waiver is the abandonment of the right which normally

everybody is at liberty to waive.15

The party who has waived compliance with a particular requirement may in some

circumstances and by giving prior notice may withdraw his waiver. This was illustrated in the

case of Charles Rickards v Oppenheim16. The facts were as follows:

14
Kapurchand Godha v Mir Nawab Himayatlikhan Azamjah AIR 1963 SC 250.
15
Waman Srinivas Kini v Ratilal Bhagwandas & co AIR 1959 SC 689.
16
Charles Rickards v Oppenheim [1950] All ER 420.

18
D ordered chassis from P. D wanted body built on it. P found someone who could do it w/in 6

or 7 months. D accepted and agreed on X date. Work was not completed by X. D pressed for

delivery, choosing not to cancel K. Got a new date, not delivered then either. D said that is

goods not delivered on Y date, then he would reject the good. Y past so he bought another

car. Car finished and P claims for price of car.

P argues that time was waived, which means it then became w/in reasonable time. If there is

delays so long as beyond his control and he did not act negligently then they are not

unreasonable

“The initial K made time an essence – the D did waive this, but D made a request and

delivery was not made in the time frame either. D was entitled to give notice of date of

delivery – whether this is a sale of goods or labour.”

“Was it reasonable notice? In determining reasonable notice must consider circumstances of

the case – the includes the work remaining to be done, and also in this case that D has

persistently pressed for delivery, and in this case the fact that the original K made time of the

essence.”

Thereby, D had a right to waive and the notice given was reasonable.

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8) Difference between Indian Law and English Law
Regarding Consideration

 “In India consideration may move from the promisee or any other person. But under
English Law the consideration must move from the promiser. In other words, a
stranger to consideration can sue in India but not in England.”

 “In England, consideration may be present or future. But in India past consideration
can be a good consideration and will support a subsequent promise.”

 “In England, consideration means something of some value in the eyes of law
moving from the promisor. Nature love and affection is not sufficient in the English
law to support a contract. In India, natural love and affection is considered to be a
good consideration and may support a contract if it is in writing and registered.”

 Under the English law, contracts are divided into formal contracts and simple
contracts. A formal contract is one which is in writing, signed, sealed and delivered
to the other party. All other contract are simple contracts. Formal contracts do not
require any consideration but simple contract must be supported by consideration. No
such distinction exists in India. All contracts expect those specified in section 25 and
185 must be supported by consideration.

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9) Conclusion

“A contract in its most basic definition is nothing more than a legally enforceable promise.
These legally enforceable promises may be in writing or oral. Either way, the formation of a
legally binding contract requires two basic elements, consideration and mutual assent.”

“In order for any contract to be enforceable, courts generally require three things: mutual
assent (agreement to the contract terms), a valid offer and acceptance, and consideration.
Consideration is basically the exchange of something of value in return for the promise or
service of the other party. A legal consideration is one which results in either profit to one
party or loss to another.” Essentially, consideration is simply what you give up in the deal for
what you get out of the deal. The idea of consideration is vital to contract law because, in
order for a contract to be enforceable, there must be “mutuality of obligation.” “In other
words, in order for a contract to be valid, both parties to the contract must be required to
perform under the contract. Consideration, which represents the commitment that the parties
to the contract make to each other, is at the heart of the” “mutuality of obligation” “rule and,
therefore, without consideration, a contract will not be enforceable.”

In addition, the exchange must be “bargained for.” The exchange must be something that the
parties agreed to prior to making the exchange. For example, B cannot suddenly mow A’s
lawn and expect payment unless A and B agreed that the exchange would be made.
Otherwise, B mowing A’s lawn would be treated as a gift.

Contract promises which are not supported by consideration are generally not enforceable. In
fact, the requirement of consideration is what distinguishes a contract from a mere gift. If one
party merely promises goods to another party without requiring them to do something in
exchange, the transaction would be a gift and not a contract.

“Some contract laws allow for a substitute of consideration, such where one party has already
reasonably relied upon the promise to their detriment (promissory estoppel). Promissory
estoppel is when a court upholds a contract even though adequate consideration was never
given because one party mislead the other party into believing that there was consideration.
21
As a result of that misrepresentation, a party went through with the contract even though the
other party never intended to make an agreement.”

BIBLIOGRAPHY

 “Contract and Specific Relief” by Avtar Singh, eleventh edition 2013.

 “The Indian Contract Act,1872” by Pollock and Mulla.
 consideration legal definition of consideration [Link]
 Elements Of Consideration | Casebriefs [Link]
 [Link] [Link]
 Four Essential Elements of a Contract [Link]
 Section 25 in The Indian Contract Act, [Link]

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