Question

Under Section 2(d) of the Indian Contract Act, 1872, what is the definition of "consideration"?

Q: Answer-Under Section 2(d) of the Indian Contract Act, 1872, what is the definition of 'consideration'?

Section 2d of the Indian Contract Act, 1872, defines consideration as the price for which the promise of the other party is bought. It can be 1 giving something of value, 2 doing something that one is not bound to do, 3 abstaining from doing something that one has a right to do, or 4 suffering detriment. Consideration must move from the promisee or at the promisors desire but need not move to the promisor Chinnaya v. Rao. Consideration is essential for contract formation except in case of gifts, wills, or agreements made under seal. Past consideration is generally not valid consideration must be present or future, flowing from the promisee, and must be legal and real.

A Mere thought or intention to give something

B Money paid or payable for a contract

C When the promisee or any other person at the promisor's desire gives something of value, or does something, or abstains from doing something, or suffers detriment in relation to such promise

D A gift given without expecting anything in return

E Only monetary exchange in contracts

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