Consideration

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LAW OF CONTRACT
Subject Code : 101

TOPIC : VALUE OF INSUFFICIENCY OF CONSIDERATION IN CONTRACT

PRESENTED BY :
NAME : Siddharth Dalabehera
ROLL : 1283092
COURSE : BA LLB (B)

UNDER THE GUIDANCE OF : MS. Jinia Kundu
and
MR. P. K. Ghosh
ACKNOWLEDGMENT

I owe a great many thanks to a great many people who helped and supported me during the making this project. My deepest thanks to Lecturer, Ms. Jinia Kundu and Mr. P. K. Ghosh, the Guide of the project for guiding and correcting various documents of mine with attention and care. They had taken pain to go through the project and make necessary correction as and when needed. I express my thanks to the Director of, KLS, for providing us with a great library. I would also thank my Institution and my faculty members without whom this project would have been a distant reality. I also extend my heartfelt thanks to my family and well wishers.

Siddharth Dalabehera
1283092

LIST OF CASES REFFERED :

* THOMAS v. THOMAS,1842
* CURRIE v. MISA,1872
* HARRIES v. SHEFFIELD UNITED FOOTBALL CLUB LTD.,1988 * WILLIAMS v. ROFFEY BROOS and NICHOLLAS,1990
* BOOTHBEY v. SOWDEN,1812
* WOOD v. ROBARTS,1818
* COOK v. LISTER,1863

CONTENTS

* INTRODUCTION TO CONTRACT
* DEFINITION OF CONSIDERATION
* IMPORTANT ELEMENT OF CONSIDERATION
* SUFFICIENCY OF CONSIDERATION
* INSUFFICIENCY OF CONSIDERATION
* CONCLUSION
* BIBLIOGRAPHY

INTRODUCTION TO THE CONTRACT :
The term contract is defined under section 2(h) of The Indian Contract Act 1872, as follows A contract is a legally enforceable agreement given rise to an obligation for the parties involved. The law of contract determines which agreements are enforceable and regulates those agreements. * An agreement which is enforceable by law is a contract.

An Agreement here is defined as every promise and every set of promises, forming the consideration for each other, is an agreement defined under section 2(e) of Indian Contract Act, 1872.

Making a contract is simply a way of facilitating amongst other things, the exchange of goods and services. Under a contract the, parties voluntarily assume their obligations or undertakings. There agreement to perform these undertakings is a contract.

DEFINITION OF CONSIDERATION :
According to Section 2(d) of Indian Contract Act,1872 defines consideration as Apart from this consideration has been variously defined as
1.Consideration is the recompense given by the party contracting to the other. 2. Consideration is the price for which the promise of the other is bought, and the promise thus given for value is enforceable. 3. Consideration means something which is of some value in the eyes of the law. 4. A valuable consideration in the sense of the law, may consist either in some right, interest, profit or benefit accruing to the one party or some forbearance, detriment, loss or responsibility given, suffered or undertaken by the other.

IMPORTANCE OF CONSIDERATION IN CONTRACT :
According to Section 25 of The Indian Contract Act,1872 provides that "An agreement made without consideration is void." Thus consideration is an essential element of a contract.
1. Sufficiency of consideration in contract.
2. Insufficiency of consideration in contract.

SUFFICIENCY OF CONSIDERATION IN CONTRACT :
Sufficiency of contract is a rule of contracts that requires all parties to offer something of legal value in a contractual bargain. Courts do require consideration to be "sufficient", which relates to whether there is a legal detriment incurred as part of a bargained exchange of promises or performances. If a bargain gives a party a choice of alternative obligations, each...
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