In a simple term, Consideration, according to Contract Law, is the return for the act that one has done. Or usually means some kind of remuneration or other benefit to one of the parties to the contractual agreement.Consideration needs not be in cash alone. Consideration is something that a party expects to receive from the other party may be in form of cash, gold, other materialistic things etc.Consideration is often monetary, but it can be a promise to perform a specific act, or a promise to refrain from doing something.
In order for a contract or agreement to be legally binding, every party to the contract must receive some type of consideration. It is a two way street where both the parties have to perform their part of giving or receiving consideration to be in a valid contract.
Now, people always think that consideration in contract should always be in a monetary form for establishing a valid contract but this is not necessary that only money can be exchanged in name of consideration but rendering services, personal property, real property, promise for act can all be a form of consideration. It could be exchange of anything of value by each party.
Will a contract be considered valid without consideration. The answer is simply No, since, the contract may be deemed invalid by a court if it lacks recognizable consideration. In India a consideration in a contract can also be a single coin of 1rs but there should be a consideration. There are some contracts where consideration might lack which are:-
1. Where the agreement is more of a promise of a gift, rather than a contract.
2.One of the parties involved was already legally obligated to perform as specified by the contract
3. The bargained for promise cannot be illusory. This means there cannot be a contract if the parties are not mutually agreed, or where only one party is required to perform.
Consideration in contract law refers to something of value given to someone in return for goods services or some other promise. A valid contract must include consideration for every party involved. In simple terms consideration is the basic reason a party enters into a legal contract. Consideration is the benefit that each party receives or expects to receive when entering into a contract. A contract is a two way street so each party must receive something of value from the other party or parties. Illegal or immortal acts are not legally considered to serve as consideration. A contract may be deemed invalid by a court if it lacks recognizable consideration. The agreement is more of a promise of a gift, rather than a contract.
I have always been against Glorifying Over Work and therefore, in the year 2021, I have decided to launch this campaign “Balancing Life”and talk about this wrong practice, that we have been following since last few years. I will be talking to and interviewing around 1 lakh people in the coming 2021 and publish their interview regarding their opinion on glamourising Over Work.
If you are interested in participating in the same, do let me know.
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