Consideration

Contract Law

Consideration Guided by- Prof. Eqbal Husain

Submitted by – Heba Rahman

 It is my imperative duty to thank the following people for the successful  completion of my Contract law project, - Professor Eqbal Husain  for the clarity he brings into teaching  thus enabling us to have a better understanding of his subject. I  also feel obliged to thank him for providing us with such wonderful  topics to choose from. -

FEED UR FRIENDS NAME,  My resourceful classmate, who I  ran into in the library, thus un-expectedly starting and successfully completing a rough handwritten draft of this project within the next  days. !hough it is possible for our language to seem similar, it has to be noted that given some of our group member"s insistence on not depending on one single book led to all of us  giving in e#ual contribution to the completion of this project.

- !he very cooperative and friendly staff members in the Central  and $aw $ibrary who were instrumental in our finding the necessary books without wasting much time. It has to be noted that  their contribution is essential as our %niversity is yet to get a fully  functional centrali&ed database for its libraries.

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Contents 1. Free Consent…………………………………………………………………… …………………………4 2. Coercion…………………………………………………………………… ……………………………….5 3. Features of   Coercion…………………………………………………………………… ……………..5 4. Act forbidden by IPC…………………………………………………………………………… ……..6 5. Una!fu detention of   Pro"erty………………………………………………………………….6 6. #uress and #i$erence bet!een Coercion % #uress……………………………………& '. Case a!s………………………………………………………………………… …………………………( &. Undue In)uence…………………………………………………………………… ………………….1* (. +$ects of Undue In)uence…………………………………………………………………… ….11 1*. +ssentias of Undue In)uence……………………………………………………………….....1 1 11. Fraud………………………………………………………………… ……………………………………..15 12. Fase ,tate-ents of   Facts………………………………………………………………………… 16 Page | 3

13. Actie Concea-ent……………………………………………………………… ………………….16 14. /ere ,ience is no fraud………………………………………………………………………… ..1' 15. +0ce"tion…………………………………………………………… …………………………………….1& 16. +e-ents of fraud………………………………………………………………………… …………..24 1'. /isre"resentation………………………………………………… …………………………………25 1&. #i$erence bet!een Fraud and /isre"resentation……………………………………26 1(. +e-ents of /isre"resentation……………………………………………………… ………..34 2*. +0ce"tions………………………………………………………… ……………………………………..34 21. /istae……………………………………………………………… …………………………………….34

Introduction to Contract La Page | 4

 

 

!"at is La#

Law means a set of rules! which "o#erns our beha#iours and relatin" in a ci#ili$ed society. So there is no need of Law in a unci#ili$ed society. %hy Should &ne 'now Law( &ne should )now the law to which he is sub*ect because i"norance of  law is no e+cuse. Meanin$,  contract is an a"reement made between two /or0 more

 1arties which the law will enforce.2 3efinition, ccordin" to section 4/h0 of the 5ndian contract act6 7894. n a"reement enforceable by law is a contract. ccordin" to SL:&;36 a contract is n a"reement creatin" and definin" obli"ations between the 1arties2.

5ntroduction to Consideration Page | 5

:eanin", Consideration is a quid 1ro quo i6e somethin" in return it may be –  • •

some benefit ri"ht6 interest6 loss or 1rofit that may accrue to one 1arty or6 some forbearance6 detriment6 loss or res1onsibility suffered on underta)en by the other   1arty7

ccordin" to  Sir Frederick Pollock 6 'consideration is the price for which the promise of the other is bought and the promise thus given for value is e nforceable.( Consideration is a technical term used in the sense of quid-1ro-quo /i.e..6 somethin" in return0. %hen a 1arty to an a"reement 1romises to do somethin"6 he must "et somethin" in return.  b. does or abstains from doin"6 or =Present consideration> c. 1romises to do or abstain from doin" somethin" =?uture consideration > such act or  abstinence or 1romise is called a consideration for the 1romise. E%a&'le a( P! a""ress to sell his car to @! for Rs.AB6BBB Here @!s Promise to 1ay RsAB6BBB is the

consideration for P!s 1romise and P!s 1romise to sell the car is the consideration for @!s  1romise to 1ay Rs.AB6BBB. b( ! 1romises his debtor ! not to file a suit a"ainst him for one year on !s a"reein" to  1ay him Rs.7B6 BBB more. Here the abstinence of ! is the consideration for !s Promise to 1ay. Consideration is needed for the formation and #ariation of a contract. Promise to com1ensate wholly or in 1art • %ho has already #oluntarily done somethin" for the 1romisor  • Somethin" which the 1romisor was le"ally com1ellable to do. • E+am1le,-  finds !s 1urse and "i#e to him.  Promise to "i#e  Rs.ABB.

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•

 debt barred by limitation con not reco#ered. Hence6 a 1romise to 1ay such a debt is

•

without any consideration. Can be enforced only when – in writin" and si"hed by 3ebtor or his authori$ed a"ent.

E+am1le,  owes  Rs.7B6 BBB but the debt is barred by Limitation ct.  si"ns a written  1romise to 1ay  Rs.86 BBB on account of debt.