‘Consideration’ means “something in return”, i.e. quid pro quo that is an essential element to find out the genuine intention of the parties of the promise to create legal relationship. Consideration is an essential component of a valid contract. Consideration is the price for the contract. An agreement without consideration is void and thus not enforceable by law except under certain circumstances. According to Sir Frederick Pollock. Consideration is the price for which the promise of the other is bought, and the promise thus given for value is enforceable.” An agreement without consideration is a bare promise and exnudo pacto non aritio actio, i.e., cannot be held to binding on the parties.

What is a Consideration?

Consideration is the price of the contract and it can be right, interest or responsibility etc. According to section 2(d) of the Indian Contract Act “when at the desire of the promisor, 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.”

When we say that consideration is an act it acquires an affirmative tone. For example A promise to pay ` 10,000 to B if B will sell his mobile to him. When we say that consideration is abstinence or forbearance it acquires negative tone. It means one party agree not to do something in lieu of the promise of other party of the contract. Thus one party may be able to benefit due to the abstinence of another who refrains from some gain.