Group Discussion Board

Consideration

Consideration

by Arpa Singh -
Number of replies: 0

Question :What is  consideration according to section? 

Answer:Consideration, in the context of contract law, refers to something of value exchanged between parties to a contract. Section 2(d) of the Indian Contract Act, 1872, provides the definition of consideration. Here's a brief overview:


**Section 2(d) - "Consideration" Defined:**

   - "When, at the desire of the promisor, the promisee or any other person has done or abstained from doing, or does or abstains from doing, or promises to do or to abstain from doing, something, such act or abstinence or promise is called a consideration for the promise."


This section essentially defines consideration as an act, abstinence, or promise by the promisee (or any other person) at the desire of the promisor. Consideration is a key element in the formation of a valid contract. It ensures that there is a mutual exchange of benefits and obligations, providing a basis for the enforceability of the contract.


In simpler terms, consideration is what each party gives up or promises to give up in exchange for the other party's promise. It signifies the bargained-for exchange that makes a contract legally binding.