Consideration is a source of any promise made to someone, when a person makes a promise to another, he does so with respect to obtaining some benefit or reward for his promise that another is competent to grant him. This is called consideration. It is part of contract law simply to exchange one thing of value for another. In contract law, consideration is considered so important to the validity of an agreement that the absence of consideration invalidates the contract. The consideration is one of the six elements of the contract that is required in case of a valid contract. The doctrine of consideration has been developed by common law.
The consideration must take the form of value that one person gives to another. But there is also a conditional consideration of summoning legal values. For example, a military officer cannot demand a reward for the capture of a terrorist because he already has a duty to perform for the state. There are many lawsuits available in law books for the purpose of explaining the consideration, one of them as follows; in which the crew could not get the extra money that the captain of the ship promised them in exchange for sailing the ship back home because they were already doing their job.
It is a fact that consideration must pass from one party to another. Precedents are available in law books. There is a case where the subcontractor received the claim as he was promised that he would get extra money if he built a block of apartment for the party. In this case, the subcontractor got stuck in a financial crisis and the party promised to pay some extra money if the subcontractor completes the project, but after the project was completed, 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.
A substantial consideration can be in the form of entitlement, interest, benefit, and benefit. It is also in the form of responsibility or in the form of a company or economic values. There is another case available in the law books in which a father promised to pay his son if he stopped smoking, drinking and using drugs. After the father refused to pay, the court ruled in favor of the son, as it was a valuable consideration, and ruled to pay the promised money. The most important purpose of the consideration is to link a document in the legal protocol.
A good consideration can take the form of present, past and future. A consideration given before the date of the present promise is said to be a past consideration. In English law, consideration must be present and future and past consideration cannot be considered. But in some regional laws, the above consideration should be considered a good consideration. A good consideration does not have to be equal or sufficient.
A valid consideration must go against the promise between both parties. It is also in the form of a cash payment, but there are other instances that represent the valid consideration. An indemnity agreement in which collateral will be provided is also a valid instance of consideration.
A good consideration does not need to be sufficient and correspond to the promise. When entering into a contract, there may be a possibility of undue influence or coercion leading to consideration of inadequacy. The consideration must be true, real and competent and not illusory or vague. If one man promises another that if you do my job I will discover treasure for you, it is not a safe consideration, although it may contain a sense of doubt. This type of consideration is not considered a good consideration. The main object of the consideration should not be prohibited by law. In case the execution of an act is contrary to 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 an illegal consideration. This type of consideration does not have legal capacity in any court of law and is not claimable. When a person makes good on a promise to do anything that includes damaging someone else’s property against an exchange, this type of claim is invalid.
A good consideration must not be immoral and damage the cultural attributes and behavior of any living society, although it must be contributing to the positive vibrations in the society later helping to build a good relationship between the legitimate parties. The immoral consideration includes renting a home to a person with a high reputation in society, which can create disturbances in the neighborhood.
The consideration should not go against public policy or any law prevailing in the region. A person may not subsequently make any promise against public order or infringe the law with respect to the general public. Interfering with the administration of justice is a clear example of interference in public policy. A good consideration should not involve any intention that makes an agreement against public order.
When any of the parties or any person wants to reach 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 entered into between the parties and, without consideration, a contract cannot be considered a valid contract. The absence of consideration invalidates the contact, but it must be taken into account that the insufficiency of the consideration is not a reason for the nullity of the agreement. An agreement may be invalid for other reasons. A consideration turns a contract into a legitimate document that is also admissible in the courts of any region of the world.