CONSIDERATION

by • 28/05/2012 • B.com part 2 Business LawComments (0)423

Q1- What is consideration?

 

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.”

Example:

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.

 

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