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1.) Definitions:-
Consideration has been defined as various ways. According to Blackstone the simplest definition is,
”Consideration is the recompense given by the party contracting to the other”. In the words of Pollock,
“Consideration is the price for which the promise of the other is bought and the promise thus given for value is
enforceable”. Consideration is the cause of all promises. Law supplies no means nor affords any remedy to
compel the performance of an agreement made without consideration. An agreement without consideration is a
bare or a naked promise and ex nudo pacto non oritio action i.e. cannot be held to be binding upon the parties.
The best definition available so far is given in an English case of Currie v. Misa as under:
Atiyah has suggested that consideration can simply be seen as „a reason for the enforcement of promises„, with
that reason being „the justice of the case„.
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(1) Past Consideration:
In case of past consideration, the promisor had received the consideration before the date of promise,
such consideration is called Past Consideration.
Example –
A's Bike on his way to office is stopped due to lack of petrol. A requested B who was petrol seller, B
gave petrol to him. Later A promised B to pay Rs. 500/- in consideration of his past consideration.
In English Law past consideration is no consideration.
Example :
A agrees to supply wheat bags to B and B agrees to pay for them on a future date. This Consideration is the
future consideration
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Is opposed to public policy. An agreement which tends to be injurious to the public or against the public good is
void. Agreements of trading with foreign enemy, agreement to commit crime, agreements which interfere with
the administration of justice, agreements which interfere with the course of justice, stifling prosecution,
maintenance and champerty.
Agreements in restrained of legal proceedings: This deals with two category. One is, agreements restraining
enforcement of rights and the other deals with agreements curtailing period of limitation.
Trafficking in public offices and titles: agreements for sale or transfer of public offices and title or for
procurement of a public recognition like padma vibhushanor padma sree etc. for monetary consideration is
unlawful, being opposed to public policy.
Agreements restricting personal liberty: agreements which unduly restrict the personal liberty of parties to it are
void as being opposed by public policy.
Marriage brokerage contact: Agreements to procure marriages for rewards are void under the ground that
marriage ought to proceed with free and voluntary decisions of parties.
Agreements interfering marital duties: Any agreement which interfere with performance of marital duty is void
being opposed to public policy. An agreement between husband and wife that the wife will never leave her
parental house.
Consideration may take in any form-money, goods, services, a promise to marry, a promise to forbear etc.
Contract Opposed to Public Policy can be Repudiated by the Court of law even if that contract is beneficial
for all of the parties to the contract- What considerations and objects are lawful and what not-Newar Marble
Industries Pvt. Ltd. Vs. Rajasthan State Electricity Board, Jaipur. Agreement of which object or
consideration was opposed to public policy, unlawful and void- – What better and what more can be an
admission of the fact that the consideration or object of the compounding agreement was abstention by the
board from criminally prosecuting the petitioner-company from offence under Section 39 of the act and that
the Board has converted the crime into a source of profit or benefit to itself. This consideration or object is
clearly opposed to public policy and hence the compounding agreement is unlawful and void under Section
23 of the Act. It is unenforceable as against the Petitioner-Company.