Q1- What is consideration?
The term “Consideration” means something in return. Contract Act 1872 defines consideration in the following words:
“When at desire of the promisor the promise has done or obtained from doing or does or abstains from doing such act is called consideration for the promise.”
X promises to deliver his good to Y and Y promises to pay Rs. 1000 on delivery. In this case, the consideration for each of these promises is as under:
For X’s promise – Y’s promise to pay Rs. 1000 on delivery.
For Y’s promise – X’s promise to deliver his goods.