Most important components of consideration in Indian Contract Act are given below:
Section 2(d) of the Indian Contract Act defines consideration as follows: “When at the desire of the promisor, the promisee or any other person has done or abstained from doing, or does or abstains from doing, or promises to do or to abstain from doing, something, such act or abstinence or promise is called a consideration for the promise.”
An analysis of the above definition will show that it consists of the following four components:
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(a) The act or abstinence or promise which forms the consideration for the promise; must be done at the desire of the promisor;
(b) It must be done by the promisee or any other person;
(c) It may have been already executed or is in the process of being done or may be still executor;
(d) It must be something to which the law attaches a value.
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Illustrations:
(i) A agrees to sell his house to B for Rs 10,000. Here B’s promise to pay the sum of Rs 10,000 is the consideration fork’s promise to sell the house, and M’s promise to sell the house is the consideration for B’s promise to pay the sum of Rs 10,000.
(ii) A promises to maintain B’s child and B promises to pay .4 Rs 1,000 yearly for the purpose. Here the promise of each party is the consideration for the promise of the other party.
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(iii) A promises his debtor B not to file a suit against him for one year on B’s agreeing to pay him Rs 100 more. The abstinence of A is the consideration for B’s promise to pay.
(iv) A promises to type the manuscript of B’s book, and in return B promises to teach A’s son for a month. The promise to each party is the consideration for the promise of the other party.