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490 views12 pagesConsideration AND Capacity: By: Avantika Mahajan
This document discusses consideration and capacity in contract law. [1] Consideration means something of value given in exchange for a promise. [2] For consideration to be valid, it must be given at the desire of the promisor by the promisee or another person in the form of an act, abstinence, or promise. [3] Both parties must have the capacity to contract, meaning they are of age and sound mind, otherwise any agreement they enter into may be void.
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0% found this document useful (0 votes)
490 views12 pagesConsideration AND Capacity: By: Avantika Mahajan
This document discusses consideration and capacity in contract law. [1] Consideration means something of value given in exchange for a promise. [2] For consideration to be valid, it must be given at the desire of the promisor by the promisee or another person in the form of an act, abstinence, or promise. [3] Both parties must have the capacity to contract, meaning they are of age and sound mind, otherwise any agreement they enter into may be void.
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Adv Sheetal SaylekarCopyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as PDF, TXT or read online on Scribd
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CONSIDERATION
AND
CAPACITY
By : AVANTIKA MAHAJAN
CONTENTS
CONSIDERATION
Meaning
Valid consideration
CAPACITY
Minor
Unsound mind
CONCLUSION
CONSIDERATION
Consideration means something in return for the promise. It may be
either some benefit conferred on one party or some detriment suffered
by the other.
Section 2 (d) of ICA, defines consideration as :—
“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.”
Example
A sells his house to B at Rs.
50,00,000.
Here the money Rs. 50,00,000
is the consideration for the
promise.
VALID CONSIDERATION
Consideration to be given ‘at the desire of the
promisor’.
Consideration to be given ‘by the promisee or any
other person’.
Consideration may be past, present or future, in so
far as definition says that the promisee:
1. Has done or abstained from doing, or
2. Does or abstains from doing, or
3. Promises to do or to abstain from doing something.
VALID CONSIDERATION
There should be some
act, abstinence or
promise by the
promisee, which
constitutes
consideration for the
promise.
CAPACITY
According to section 11 :–
“Every person is competent to
contract who is of the age of
majority according to the law
to which he is subject, and
who is of sound mind, and is
not disqualified from
contracting by any law to
which he is subject.”
MINOR
A person who has not attained the age of
majority is a minor.
Section 3 of Indian Majority Act, 1875
states that a person is deemed to have
attained the age of majority when he
completes the age of 18 years, except in
case of a person of whose person or
property a guardian has been appointed
by the court, in which case the age of
majority is 21 years.
MINOR’S AGREEMENT
Void ab initio
Landmark case :
Mohori Bibee v. Dharmodas Ghose
Citation to the case —
(1903) 30 I.A. 114 (P.C.).
UNSOUND MIND
A person who is not capable of
understanding to form a contract and to
form a rational judgment as to its effect
upon his interests.
Insane
Drunkenness
Person in lunatic asylum
Case : Chacko v. Mahadevan A.I.R. 2007
S.C. 2967
CONCLUSION
Consideration is important to form a contract.
Consideration should be lawful.
To form a contract, the both parties must be
competent.
Consideration and competency for the
formation of a contract is an essential to a
valid contract.
THANK YOU