The consideration is the origin of any promise made to someone, when a person makes a promise to another, he does so with respect to obtaining some benefit or return for his promise that another is competent to grant him. This is called consideration. The simple exchange of one thing of value for another is part of contract law. In contract law, consideration is considered so important to the validity of an agreement that the absence of consideration renders the contract invalid. Consideration is one of the six contract elements that is required in case of a valid contract. The doctrine of consideration has been developed by the common law.
The consideration must be in the form of value that one person places on another person. But there are also conditional consideration of the values that legally summon. For example, a military officer cannot demand a reward for the capture of any terrorist because he already has a duty to act for the state. There are many judgments available in the law books with a view to explaining the consideration, one of them as follows; in which the crew members couldn’t get the extra money the ship’s captain promised them in exchange for sailing the ship home because they were already doing their job.
It is a fact that consideration must pass from one party to another party. There are precedents available in the law books. There is a case where the subcontractor received the claim because he was promised extra money if he builds a block of flats for the party. In this case, the subcontractor got into a financial crisis and the party promised to pay some extra money if the subcontractor completes the project, but after completing the project, the party refused to pay extra money, claiming that the project was delayed. , but the court ordered to pay extra money and declared that the promisor made practical benefit.
Substantial consideration may be in the form of rights, interest, gain, and profit. It is also in the form of liability or in the form of business or economic values. There is another case available on the law books in which a father promised to pay his son back if he quit smoking, drinking and drugs. After that, the father refused to pay, but the court entered judgment in favor of the son, as it was a valuable consideration, and entered judgment to pay his son the promised money. The most important purpose of consideration is to bind a document in the legal protocol.
A good consideration can be in the form of present, past and future. Consideration given before the present promise date is said to be past consideration. In English law, consideration must be both present and future, and past consideration is not capable of being considered. But in some regional law the past consideration should be considered as good consideration. A good consideration does not have to be equal or sufficient.
A valid consideration must be against the promise between both parties. It is also in the form of payment of money, but there are other instances that represent valid consideration. An indemnity agreement in which collateral will be provided is also an example of valid consideration.
A good consideration need not be enough and correspond to the promise. In making a contract, there may be a possibility of undue influence or coercion leading the consideration to impropriety. The consideration must be true and real and competent and not be illusory or vague. If one man promises another that if you do my work I will discover a treasure for you, it is not a safe consideration though it may contain a sense of doubt. This kind of consideration is not considering a good consideration. The main object of the consideration must not be prohibited by law. In the event that performing an act is against the law, the agreement would be called a void agreement. The sale of liquor without registration is an open example of a void agreement.
If a consideration includes injury to a person or damage to someone’s property, it is also called unlawful consideration. These types of considerations do not have legal capacity in any court of law and are not claimable. When a person makes a promise to do anything that includes damaging another person’s property against an exchange, this type of claim is invalid.
A good regard should not be immoral and detrimental to the cultural attributes and behavior of any living society, though it should contribute to the positive vibes in the society and subsequently help build a good relationship between the legitimate parties. Immoral consideration includes renting a house to a person who has a notorious reputation in society that may create disturbances in the neighborhood.
The consideration must not go against public policy or any law in force in the region. A person may not subsequently make any promise against public order or to the detriment of the law with regard to the general public. Interference in the administration of justice is a clear example of the usurpation of public policy. Good consideration should not involve any intent to compromise against public policy.
When any party or any person wants to make an agreement between them, there is a consideration and without consideration both parties cannot make a contract or any agreement. It is a rule of law that with a valid consideration there can be no agreement and a good consideration turns an agreement into a legitimate contract. Therefore, consideration is an essential element in any contract made between the parties and without consideration a contract cannot be considered a valid contract. The lack of consideration invalidates the contract, but it must be taken into account that the insufficiency of the consideration is not a reason for the invalidity of the agreement. An agreement may be invalid for a variety of other reasons. A consideration turns a contract into a legitimate document that is also admissible in courts of law in any region of the world.