Summary of "Consideration | Indian Contract Act 1872 | ICA 1872 | Judiciary By PW | Shivani Solanki Ma'am #4"
Summary of "Consideration | Indian Contract Act 1872 | ICA 1872 | Judiciary By PW | Shivani Solanki Ma'am #4"
The video explains the concept of Consideration under the Indian Contract Act, 1872, focusing on its definition, importance, and legal principles as interpreted by the Judiciary.
Main Ideas and Concepts:
- Definition of Consideration:
- Consideration is something of value exchanged between parties in a contract.
- It is the price paid for the promise and is essential for the validity of a contract.
- It can be in the form of money, goods, services, or a promise to do or not do something.
- Essentials of Consideration:
- Must move at the desire of the promisor.
- Can move from the promisee or any other person.
- Must be real and have some value in the eyes of law.
- Need not be adequate but must be lawful.
- Must not be past Consideration (generally, past Consideration is not valid except in some exceptions).
- Types of Consideration:
- Executed Consideration: Consideration which is already performed.
- Executory Consideration: Consideration which is to be performed in the future.
- Legal Principles and Case Laws:
- Consideration must be lawful and not opposed to public policy.
- Past Consideration is generally not valid unless it was done at the promisor's request and with an understanding of future payment.
- Consideration can move from a third party, not necessarily the promisee.
- The Judiciary’s interpretation and application of these principles through landmark cases.
- Exceptions to the Rule Against Past Consideration:
- When an act is done at the promisor’s request.
- When the parties understood that payment or compensation would be made.
- When the payment is legally enforceable.
Methodology / Instructions Presented:
- To determine if Consideration is valid in a contract, check the following:
- Was the Consideration given at the desire of the promisor?
- Is the Consideration lawful and not against public policy?
- Is the Consideration adequate (though adequacy is not mandatory)?
- Is the Consideration past, present, or future? If past, does it fall under any exception?
- Does the Consideration move from the promisee or a third party?
- Analyze relevant case laws to understand the Judiciary’s stance on Consideration.
Speakers/Sources Featured:
- Shivani Solanki Ma'am – The primary instructor explaining the concept.
- References to Judiciary decisions and Indian Contract Act, 1872 as the legal source.
Category
Educational
