Consideration is an origin of any promise made to anyone, when a person makes a promise to another he does so in respect of deriving some benefit or return for his promise which another is competent to bestowing on him. This is called consideration. It is part of the contract law simply exchange of one thing of value for another thing. In the contract law, consideration is being considered so significant for the validity of an agreement that the absence of consideration make the contract invalid. Consideration is one of the six elements of contract which is required in case of a valid contract. The doctrine of consideration has been developed by the common law.
Consideration must be in the form of value which a person gives to another person. But there are also conditional consideration convene the legally values. For example, a military officer cannot demand a reward for the capture of any terrorist because he is already on a duty to perform for the state. There are many judgments available in the books of law with a view to explain the consideration, one of them as follows; in which the crew members could not got the extra money which is promised by the captain of the ship in exchange of sailing the ship to back home because they were already doing their job.
It is a matter of fact that consideration must move from one party to another party. There are precedents available in the books of law. There is a case in which the subcontractor received the claim as he was promised to get extra money if he builds a block of flat for the party. In this case subcontractor stuck into financially crisis and the party promised to pay some extra money if subcontractor completes the project but after completion the project the party refused to pay extra money claiming that projected got late but court gave order to pay extra money declared that the promisor made practical benefit.
A substantial consideration may be in the form of right, interest, profit and benefit. It is also in the form of responsibility or in the form of undertaking or economic values. There is another case available in the books of law in which a father promised to pay his son if his son quit smoking and drink and drugs. After that father refused to pay but court passed judgment in the favor of son as it was a valuable consideration and gave judgment to pay his son promised money. The most important purpose of consideration is to binding a document in the legal protocol.
A good consideration may be in the form of present, past and future. A consideration given before the date of present promise is said to be a past consideration. In English law the consideration must be present and future and past consideration is not liable to be considered. But in some regional law the past consideration must be deemed as good consideration. A good consideration does not have to be equal or sufficient.
A valid consideration must be against the promise between both the parties. It is also in the form of payment of money but there are other instances representing the valid consideration. An indemnity agreement in which collateral surety will be given is also an instance of valid consideration.
A good consideration not needs to be sufficient and correspondent to the promise. While making a contract there may be a chance of undue influence or coercion which leads the consideration into the inadequacy. Consideration should be certain and real and competent and not to be illusory or vague. If a man promises to another that if you do my work I will discover a treasure for you, it is not a certain consideration although it may contain a sense of doubt. These kinds of consideration are not considering a good consideration. The main object of the consideration should not be prohibited by the law. In case the performance of an act is against the law the agreement would be called a void agreement. Sale of liquor without registration is an open example of void agreement.
If a consideration is including in the injury of a person or damage of anyone property then it is also called unlawful consideration. This kind of considerations has no legal capacity in any court of law and is not claimable. When a person keeps a promise to do anything that includes the damaging the property of any other against an exchange then this kind of claim is not valid.
A good consideration should not be immoral and damaging the cultural attributes and behavior of any living society, although it should be contributing the positive vibes in the society subsequently helps to building a good relationship between the legitimate parties. Immoral consideration includes letting a house to a person having notorious reputation in the society which can create disturbance to neighborhood.
Consideration should not be against the public policy or any law prevailing in the region. A person cannot make any promise subsequently against the public policy or damaging the right in respect of public at large. Interfering in the administration of justice is clear example of encroachment in the public policy. A good consideration should not involve any intention which makes an agreement against the public policy.
When any party or any person want to make an agreement between them there is a consideration exist and without consideration both the parties cannot make a contract or any agreement. It is a rule of law that with a valid consideration an agreement cannot exist and a good consideration makes an agreement into legitimate contract. So consideration is an essential element in any contract made between the parties and without consideration a contract cannot be consider a valid contract. The absence of consideration renders the contact invalid but it should be noted that inadequacy of the consideration in not a ground for invalidity of the agreement. An agreement can be invalid on other various grounds. A consideration turns a contract into a legitimate document which is also admissible in the court of law of any region in the world.