Question

    Under Section 2(d) of the Indian Contract Act, 1872,

    what is the definition of "consideration"?
    A Mere thought or intention to give something Correct Answer Incorrect Answer
    B Money paid or payable for a contract Correct Answer Incorrect Answer
    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 Correct Answer Incorrect Answer
    D A gift given without expecting anything in return Correct Answer Incorrect Answer
    E Only monetary exchange in contracts Correct Answer Incorrect Answer

    Solution

    Section 2(d) 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 promisor's 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.

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