Doctrine of Consideration Under Indian Contract Act: Explained with Examples and Case Laws

1. Introduction

What is Consideration in General Terms?

In the simplest terms, consideration means something in return for a promise. It is the value that one party gives to another to make a contract legally enforceable. Under contract law, consideration is the essential ingredient that transforms an ordinary promise into a binding agreement. This concept rests on the idea that every promise, to be enforceable by law, must have a price attached to it, however nominal that price might be. Consideration can take many forms—it may be money paid, goods delivered, services rendered, or even an undertaking to refrain from doing something that one is legally entitled to do. For example, if A promises to sell a book to B for ₹500, the payment of ₹500 by B is the consideration for A’s promise to transfer the book. Similarly, if C agrees not to file a lawsuit against D in exchange for a settlement, C’s promise to abstain from legal action itself becomes valid consideration. In essence, consideration is the foundation of reciprocity in contracts. It represents the principle that the law will only enforce promises when each party gains some benefit or suffers some detriment in return for the promise made by the other. Without this mutual exchange of value, a promise remains a moral obligation rather than a legal one.

Why It Is Important in Contract Law?

Consideration is critical in contract law because it serves as clear proof that the parties intended their promises to have legal consequences. In other words, it helps the law distinguish between casual social arrangements—like a promise to visit a friend—and serious commitments that the parties expect to be enforceable. The presence of consideration demonstrates that each party has given or promised something of value, thereby ensuring fairness and balance in the transaction. This mutual exchange prevents situations where one side receives a benefit without giving anything in return. Moreover, consideration acts as evidence that the parties entered into the agreement willingly and understood their obligations. Courts often rely on this element to test whether a contract was formed freely and with genuine consent. In commercial and professional dealings, consideration builds trust and predictability because both sides know that their rights and duties are legally recognised. Without consideration, any promise—no matter how casual or insincere—could be dragged into court, creating unnecessary disputes and uncertainty in everyday life. This is why consideration is often called the “backbone” or “lifeblood” of a valid contract.

Brief Reference to Indian Contract Act

In India, the concept of consideration is not merely derived from common law principles but is expressly defined and codified in the Indian Contract Act, 1872. This Act serves as the primary legislation governing contracts across the country. Section 2(d) provides a comprehensive definition of consideration, describing it as any act, abstinence, or promise made at the desire of the promisor by the promisee or any other person. This provision reflects a deliberate policy to make the Indian framework more flexible than English law, especially by recognising that consideration can move from someone other than the promisee. Apart from Section 2(d), other sections of the Act also deal with consideration’s validity and scope. For example, Section 10 specifies that an agreement becomes a contract only if it is made for lawful consideration and with lawful object. Section 23 lays down that the consideration must not be unlawful, immoral, or opposed to public policy, while Section 25 highlights specific situations in which an agreement without consideration can still be enforced, such as promises made out of natural love and affection or to compensate for voluntary services. Together, these provisions create a structured and predictable legal framework, ensuring that consideration is both a foundational and a regulated element of every enforceable contract in India.

2. Meaning and Definition Under Section 2(d)

Full Legal Definition

Section 2(d) of the Indian Contract Act, 1872, sets out the definition of consideration in precise statutory language:

“When, at the desire of the promisor, the 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.”

This definition is deliberately broad so that it can cover a wide range of situations—whether a party gives something, does something, refrains from doing something, or merely makes a promise to do any of these acts.

Breakdown of Important Elements in Simple Terms

This definition, although detailed, becomes clear when you look at each part separately:

• At the desire of the promisor:
  The act or abstinence must be done because the promisor wanted it. If the promisee acts voluntarily without any request, it does not count as valid consideration.
• The promisee or any other person:
  Indian law is more flexible than English law because it allows a third party—someone who is not the promisee—to provide consideration. This means even a stranger to the consideration can enforce the contract if they are a party to the agreement.
• Has done, does, or promises to do:
  Consideration can be in the past (already done), in the present (happening at the same time as the promise), or in the future (promised to be done later). This makes Indian contract law broader and more inclusive.
• Act or abstinence:
  Consideration can be positive (doing something) or negative (agreeing not to do something you are legally entitled to do).

Simply put, consideration under Section 2(d) is anything valuable—an action, a forbearance, or a promise done at the promisor’s request, whether by the promisee or someone else, and whether in the past, present, or future.

Example to Illustrate the Definition

Let’s take a practical example to see how all these elements come together:

Suppose A requests B to deliver 20 bags of rice to C’s warehouse. B delivers the rice as asked. A week later, A promises to pay B ₹10,000 as a reward for the delivery.

In this situation:

• The act (delivery of rice) was done at the desire of the promisor (A).
• The act was performed by the promisee (B).
• The act had already been completed when the promise to pay was made—so it is past consideration.
• The act itself (delivering the goods) is a positive act rather than abstinence.

This means all the conditions of Section 2(d) are satisfied, and the promise to pay ₹10,000 becomes enforceable under Indian contract law.

3. Essentials of a Valid Consideration

To be legally enforceable, consideration must meet several important requirements. These essentials ensure that consideration is not just any act or promise but something with legal significance. Courts use these tests to decide whether a promise should be binding. Let’s look at each essential element in detail:

Must Move at the Desire of the Promisor

This is perhaps the most critical requirement. The act, abstinence, or promise that forms consideration must be done only because the promisor wanted it. If the promisee does something voluntarily, or because someone else asked them, it does not amount to valid consideration.

Example:
If you wash your neighbour’s car without being asked and then demand payment, you cannot enforce this claim.

Case Reference:
In Durga Prasad v. Baldeo (1880), the plaintiff constructed a marketplace on government orders. Later, shopkeepers promised to pay him a commission. The court held there was no enforceable contract because the construction was not done at their desire.

May Move from Promisee or Any Other Person

Unlike English law, Indian law does not require that consideration must come only from the promisee. Under Section 2(d), it can be furnished by the promisee or any other person. This means that even a person who is not directly providing the consideration can still enforce the contract, provided they are a party to it. This flexibility recognises social and family arrangements common in India, where third parties often play a role in transactions.

Example:
A mother gifts property to her daughter on the condition that the daughter will pay an annuity to the mother’s brother. Although the brother has given no consideration himself, he can sue to enforce the payment, because the consideration moved from the mother at her desire.

Case Reference:
Chinnaya v. Ramaya (1882) is the classic case here. The Privy Council held that consideration may proceed from any person, not just the promisee, making the agreement enforceable by the uncle.

Can Be Past, Present, or Future

Indian contract law recognises that consideration can occur at different points in time. This is another area where Indian law is broader than English law, which generally does not allow past consideration. Under Section 2(d), any of the following are valid:

• Past consideration: Something already done before the promise is made.
• Present (executed) consideration: An act done at the time of the promise.
• Future (executory) consideration: A promise to do something later.

This flexibility is particularly important in commercial and family contexts, where services are often rendered before formal promises are recorded.

Examples:

• Past consideration: A saves B’s cattle from drowning. Later, B promises to pay A ₹5,000. The act was completed before the promise but is still enforceable.
• Present consideration: A buys a bag of rice and pays cash on the spot. The act and payment happen simultaneously.
• Future consideration: A contracts to build a house for B within six months, and B promises to pay ₹10 lakh upon completion.

Must Be Lawful

For any contract to be valid, the consideration must be lawful. Section 23 of the Indian Contract Act clearly lays down that consideration (and the object of the agreement) must not:

• Be forbidden by law,
• Defeat the provisions of any existing law,
• Be fraudulent,
• Involve or imply injury to a person or property,
• Be immoral or opposed to public policy.

If consideration falls into any of these categories, the agreement becomes void and unenforceable. This principle ensures that courts do not enforce promises made for illegal or socially harmful purposes.

Example:
A promises to pay B ₹20,000 if B helps A smuggle contraband across the border. Since smuggling is forbidden by law, this consideration is unlawful, and the promise cannot be enforced.

Another example is an agreement to pay money to procure a public office or government job. Such consideration is opposed to public policy and therefore invalid.

Must Be Real and Not Illusory

Consideration must be real, definite, and tangible. This means it must have some actual value in the eyes of the law. If the consideration is vague, impossible, imaginary, or based on something that can never happen, it is regarded as illusory, and the contract will be void for lack of real consideration. The purpose of this requirement is to ensure that the agreement reflects a serious intention to create legal obligations rather than a hollow or fanciful promise.

Example:
If A promises to pay B ₹1 lakh if B can make the sun rise in the west, this is not valid consideration because the act is impossible. Similarly, if A promises to pay B if B can perform black magic to cure an illness, this is illusory and unenforceable.

Tip for Students:
Whenever you assess consideration, always check whether the promised act is something that can be objectively measured or achieved. If it is too vague or impossible, the courts will refuse to enforce it.

Need Not Be Adequate

Another important principle under Indian contract law is that consideration does not have to be equal in value to the promise. This is stated in Explanation 2 to Section 25, which provides that “an agreement to which the consent of the promisor is freely given is not void merely because the consideration is inadequate.” This means the courts will not usually interfere with the relative value of what each party has agreed to give or do. People are free to make what may appear to others as bad bargains. However, if the consideration is so grossly inadequate that it seems suspicious, the courts may examine whether there was fraud, coercion, or undue influence.

Example:
If A agrees to sell a piece of land worth ₹10 lakh to B for ₹50,000, the contract is valid, provided A’s consent was freely given. The inadequacy of price by itself does not make the agreement void. But if A is elderly, uneducated, and heavily dependent on B, and sells the land for a fraction of its value, the court may consider whether B took unfair advantage.

Tip for Practitioners:
Always check that the consent was free. While the courts do not weigh adequacy, they will scrutinise unfair transactions to see if there was exploitation.

Must Not Be a Pre-Existing Duty

Consideration must be something more than what the promisee is already legally bound to do. If the promisee simply promises to perform a duty they are already obligated to carry out, this is not valid consideration because no new value is being provided. The law expects some fresh detriment or benefit to arise from the promise. This principle ensures that contracts are based on genuine exchange rather than merely restating existing obligations.

Example:
If a police officer promises to investigate a theft in exchange for payment from the victim, this promise is void because the officer is already duty-bound by law to investigate crimes.

Case Reference:
In Collins v. Godefroy (1831) (an English decision often referred to in India), it was held that a witness who is under a subpoena to attend court cannot claim extra payment for doing so, because attending court is a legal duty. However, if a person goes beyond their legal duty, that extra effort can be valid consideration.

Example:
A contractor agrees to complete work two months earlier than the deadline in return for a bonus. Since early completion is not a pre-existing duty, this is enforceable.

 Must Be Certain and Definite 

Consideration must be clear, specific, and definite so that the court can understand what exactly has been promised. If the consideration is too vague or uncertain, the agreement fails because it becomes impossible to enforce. This requirement helps avoid confusion, disputes, and potential abuse, since no one should be bound by a contract whose terms are unclear or ambiguous.

Example:
If A promises to pay B “a reasonable sum” for B’s help with some unspecified work “sometime in the future,” this is too vague to enforce. What is “reasonable”? What work? When?

However, if the agreement specifies that B will deliver 100 bags of rice to A within 30 days and A will pay ₹50,000, the terms are definite.

Tip for Students:
When drafting or evaluating contracts, always look for clarity about:

• What exactly is being promised?
• When will it be done?
• What is the value or price?

If these points are not reasonably certain, the contract may fail for uncertainty.

4. Types of Consideration

Consideration in Indian contract law can be classified by when it is given. Section 2(d) expressly recognises that it may be past, present, or future. Understanding these categories is essential because they show how flexible Indian law is in validating agreements.

Past Consideration

Meaning:
Past consideration means the act or service was performed before the promise was made. Even though the promise comes later, the law still treats the earlier act as valid consideration. This is a significant departure from English law, which generally does not recognise past consideration unless it was done at the promisor’s request.

Example:
A finds B’s lost watch and returns it. A week later, B promises to pay A ₹1,000 as a reward. Although A’s act happened before B’s promise, it was at B’s implied desire (recovering the watch), so it is valid past consideration.

Tip for Students:
Always check if the earlier act was done voluntarily or at the promisor’s request. If it was done at the promisor’s desire, it is enforceable.

Present or Executed Consideration

Meaning:
Present consideration is when the consideration and the promise occur simultaneously. It is an act performed at the time the promise is made. This is the most common form in everyday contracts like buying goods, services, or property.

Example:
A buys a laptop from B and pays ₹50,000 on the spot. The payment is present consideration for B’s promise to deliver the laptop.

Note:
Present consideration shows that both parties are fulfilling their obligations right away, making the contract immediately effective.

Future or Executory Consideration

Meaning:
Future consideration means a promise to do or refrain from doing something in the future. In such contracts, the performance is yet to happen. This is very common in contracts involving delivery of goods or performance of services at a later date.

Example:
A agrees to supply 500 bags of cement to B next month, and B promises to pay ₹2 lakh on delivery. Both parties have promised to do something in the future—this is executory consideration.

Tip for Practitioners:
Executory contracts often require clear terms about delivery dates, payment schedules, and penalties for delay to avoid disputes later.

5. Legal Maxims Related to Consideration

One of the oldest and most important maxims in contract law is:

“Ex nudo pacto non oritur actio”
(No action arises from a bare promise.)

In simple words, “No consideration, no contract.” This means that if there is no consideration, the promise is a nudum pactum—a naked promise—without legal force. Consideration is what gives a promise substance and makes it enforceable. Without it, the courts will not compel performance, even if the promise was sincere.

General Rule: No Consideration, No Contract

Section 25 of the Indian Contract Act clearly states that an agreement made without consideration is void. This rule upholds the idea that both parties must contribute something of value. However, Indian law recognises that sometimes a promise should be enforced even without consideration. To balance fairness and strict legal doctrine, the Act provides specific exceptions.

Key Exceptions to the Rule

Here are the main exceptions under Section 25 where an agreement without consideration is still valid:

Agreement Made Out of Natural Love and Affection

• If a promise is made out of natural love and affection, it can be enforced even without consideration.
• But it must meet two conditions:
  • It is in writing and registered.
  • It is made between parties standing in a near relationship.

Example:
A father executes a registered document promising to give a house to his daughter because of love and affection. This is enforceable.

Promise to Compensate for Past Voluntary Services

• If someone has already voluntarily done something for the promisor, and the promisor later promises to compensate them, the promise is valid even without fresh consideration.

Example:
A finds B’s purse and returns it. B later promises to pay A ₹1,000. This is enforceable.

Promise to Pay a Time-Barred Debt

• If a debtor promises in writing and signed to pay a debt that has become time-barred under the Limitation Act, the promise is enforceable without consideration.

Example:
A owes B ₹20,000, but the limitation period has expired. A signs a written promise to pay ₹5,000 towards the debt. B can recover that amount.

Completed Gift

• A completed gift does not require consideration. Once the transfer is done voluntarily and accepted, it is valid.

Example:
A gifts B a car. Even without consideration, the gift is complete and cannot be revoked.

 Agency

• Under Section 185, no consideration is required to create an agency relationship.

Example:
A appoints B as his agent to sell goods. No payment is necessary to make the appointment valid.

Tip for Students:
Whenever you see a contract without consideration, check these exceptions. If none apply, the agreement is void.

6. Case Laws on Consideration

Case law has played a vital role in clarifying and applying the doctrine of consideration under Indian contract law. Here are 7 important decisions every student and professional should know:

 Durga Prasad v. Baldeo (1880)

Facts:
The plaintiff constructed a market at the request of the government. Later, the shopkeepers who benefited from the market promised to pay the plaintiff a commission on their sales.

Observation:
The Allahabad High Court held there was no consideration, as the plaintiff did not build the market at the desire of the shopkeepers but at the government’s request.

Principle:
An act done not at the desire of the promisor cannot constitute valid consideration.

 Chinnaya v. Ramaya (1882)

Facts:
A woman gifted property to her daughter, requiring her to pay an annuity to the donor’s brother. When the daughter refused to pay, the brother sued.

Observation:
The court held that consideration can move from any other person, not just the promisee.

Principle:
Section 2(d) allows consideration to move from a third party.

Abdul Aziz v. Masum Ali (1914)

Facts:
The defendant promised to subscribe ₹500 to rebuild a mosque but later refused to pay.

Observation:
The court found no consideration because the plaintiff had not incurred any liability or started the work in reliance on the promise.

Principle:
A mere promise to subscribe to charity is unenforceable unless the promisee acts on it and suffers some detriment.

Kedar Nath v. Gorie Mohammad (1886)

Facts:
The defendant promised a donation to build a town hall. Relying on the promise, the plaintiff incurred expenses.

Observation:
The court enforced the promise because the plaintiff’s expenditure created a liability.

Principle:
When the promisee incurs obligations relying on the promise, it amounts to consideration.

 Sindha Shri Ganpatsingji v. Abraham (1896)

Facts:
The defendant promised to pay part of a time-barred debt through a signed written acknowledgment.

Observation:
The court enforced the promise under Section 25(3), which validates promises to pay time-barred debts if in writing.

Principle:
A written promise to pay a time-barred debt is enforceable without consideration.

Rajlukhy Dabee v. Bhootnath Mukherjee (1900)

Facts:
A husband promised to pay his wife an allowance for maintenance out of love and affection, but the promise was neither in writing nor registered.

Observation:
The court held the promise was unenforceable.

Principle:
For love and affection to be a valid exception, the agreement must be written and registered.

Thomas v. Thomas (1842) (English but often cited in India)

Facts:
A husband wished to give his widow the right to live in his house. After his death, the executors agreed she could stay if she paid £1 rent annually.

Observation:
The court held that even the payment of nominal rent was valid consideration.

Principle:
Consideration need not be adequate, only real and of some value in law.

Tip for Practitioners:
Always cite these cases when explaining the scope and limits of consideration in India. They illustrate every essential element you must check to confirm whether a contract is enforceable.

Special Situations

While the principles of consideration are generally uniform, some special situations require closer attention. These contexts often involve added legal safeguards or exceptions due to public policy or specific statutory protections. Here are three key examples:

Consideration in Contracts with Minors

General Rule:
Under Section 11 of the Indian Contract Act, a minor’s agreement is void ab initio—void from the beginning. Since a minor cannot contract, even consideration cannot validate the agreement.

Important Exception:
Although a minor cannot bind himself by a promise, if the other party has performed something for the minor’s benefit (e.g., necessaries like food, education, medical care), the supplier can recover the value of those necessaries from the minor’s property under Section 68.

Example:
If A supplies textbooks and school uniforms to a minor B, A can recover reasonable payment, but only from B’s property—not by personal liability.

Tip for Practitioners:
Be very cautious when dealing with contracts involving minors. Even valuable consideration will not make a minor’s promise enforceable unless it falls under recognized exceptions.

Doctor–Patient Scenario

Contracts between doctors and patients are often based on implied consideration. When a patient seeks treatment, the law assumes an obligation to pay a reasonable fee, even if no explicit price is fixed at the start.

Example:
A patient consults a doctor for surgery. Even without a written agreement on the fee, the law implies a promise to pay a customary charge for professional services rendered.

Principle:
The act of providing skilled services creates enforceable consideration in the form of an implied promise to pay.

Note:
However, purely charitable or voluntary treatment without any expectation of payment would not create an enforceable obligation.

Government Contracts

Government contracts are governed not only by the Indian Contract Act but also by constitutional and statutory rules (e.g., Article 299 of the Constitution).

Key Points:

• The contract must be expressed in the name of the President or Governor.
• It must be executed by an authorised person.
• Consideration must still be lawful and valid.

Example:
If the government contracts to buy land and pays earnest money, the payment is valid consideration. However, if the agreement is not executed as required by Article 299, it is void—even if consideration exists.

Tip for Students:
When analysing a government contract, always check for statutory compliance in addition to consideration.

8. Comparison with English Law

Indian contract law evolved from English common law, but over time, significant differences developed—especially regarding who can provide consideration and the treatment of past consideration. Understanding these distinctions is crucial for exams and professional practice.

Who Can Provide Consideration?

English Law:
Under English law, consideration must move from the promisee. If a third party provides consideration, the promisee cannot enforce the contract, even if they are a party.

Indian Law:
Section 2(d) of the Indian Contract Act expressly allows consideration to move from the promisee or any other person. This makes Indian law more flexible and better suited to social and family arrangements.

Example:

• English Law: If C pays A to deliver goods to B, B cannot enforce the promise.
• Indian Law: In Chinnaya v. Ramaya, the Privy Council held that even though the uncle (plaintiff) gave no consideration himself, he could enforce the promise because consideration had moved from the mother.

Past Consideration

English Law:
Generally, past consideration is no consideration. If the act was done before the promise, the contract is unenforceable, except in limited situations (such as if the act was done at the promisor’s request).

Indian Law:
Section 2(d) explicitly recognises past consideration as valid. This inclusion reflects Indian courts’ broader approach to upholding promises arising from prior acts.

Example:

• English Law: A finds B’s lost watch. Later, B promises to pay £50. This is usually unenforceable.
• Indian Law: The same facts create an enforceable obligation because the act was done at the promisor’s implied desire.

Adequacy of Consideration

Both English and Indian law agree that consideration need not be adequate. As long as something of value exists, the courts will not examine whether it was a fair bargain.

Example:
Selling a car worth ₹5 lakh for ₹10,000 is still a valid contract if entered freely.

Doctrine of Privity and Its Relationship with Consideration

English Law:
The doctrine of privity is strict: a contract cannot confer rights or impose obligations on anyone except the parties. Even if consideration moves from a third party, that person cannot sue or be sued under the contract.

Indian Law:
Indian courts have sometimes relaxed privity in cases involving trusts, family settlements, and acknowledgments. However, the general principle remains that only parties to a contract can enforce it—though the broader rule on who can provide consideration means that sometimes third parties have standing to sue if they are named as beneficiaries.

Example:

• English law would not allow a third-party beneficiary to enforce the contract simply because consideration was provided.
• Indian law allows enforcement if the beneficiary is a party to the contract, even if they did not provide consideration themselves.

9. Criticism and Contemporary View

While the doctrine of consideration has been a cornerstone of contract law for centuries, it is not free from criticism. Many judges, scholars, and practitioners have questioned whether it still serves a useful purpose in modern commerce. Let’s explore the key points of criticism and evolving perspectives.

Criticism of the Doctrine

a) Technical and Artificial
Many argue that consideration is often reduced to a mere formality. For example, paying ₹1 or delivering a peppercorn just to create “some consideration” makes the doctrine artificial.

Example:
A agrees to sell a house for ₹50 lakh but the contract recites that A will be paid “₹1 as consideration.” The law treats this as valid consideration even though it is nominal and unrealistic.

b) Ineffective as a Filter
Originally, the doctrine was meant to distinguish enforceable promises from mere social agreements. Critics say that in reality, intention to create legal relations is a much better test for enforceability.

c) Overlaps with Other Doctrines
Consideration often overlaps with doctrines such as estoppel and promissory estoppel, which protect reliance on promises even without consideration. This overlap makes the doctrine redundant in many cases.

Should Consideration Be Reformed?

Many modern legal systems have tried to simplify or reform the requirement:

• England: The Law Revision Committee recommended abolishing consideration altogether for simple contracts.
• United States: Under the Uniform Commercial Code, many contracts (especially sales of goods) are enforceable without consideration if they meet other formalities.
• India: There is no formal reform yet, but courts have increasingly relied on promissory estoppel to enforce promises where fairness requires it.

 Is Consideration Still Necessary in Modern Commercial Contracts?

In practice, most commercial contracts are supported by clear consideration. However, in sectors such as e-commerce, IT services, and franchising, the idea of consideration sometimes becomes a technical hurdle rather than a meaningful requirement.

Examples:

• Companies offering “free” digital services but obtaining users’ data.
• Agreements based on long-standing business relationships without explicit exchange at every stage.

Contemporary View:
Many legal scholars now see intention to create legal relations and reliance as more important indicators of enforceability than consideration itself.

Tip for Law Students and Practitioners:
Despite criticism, remember that in India, consideration remains a statutory requirement (except for specific exceptions under Section 25). Always verify whether consideration exists before advising clients or drafting agreements.

10. Conclusion

The doctrine of consideration is one of the fundamental pillars of contract law in India. Even though it is sometimes criticised for being technical or outdated, it continues to play a critical role in distinguishing enforceable promises from mere statements of intention.

Quick Recap

Let’s summarise the key points you’ve learned:

• Meaning: Consideration is what each party gives or promises to give in return for the other’s promise.
• Legal Definition: Section 2(d) of the Indian Contract Act provides a broad and inclusive definition that recognises past, present, and future consideration.
• Essentials: Consideration must be at the promisor’s desire, lawful, real, certain, and not a pre-existing duty.
• Types: It can be past (something already done), present (something done simultaneously), or future (a promise to do something later).
• Exceptions: In India, certain promises (like those made out of love and affection, or to pay time-barred debts) are enforceable even without consideration.
• Case Laws: Landmark cases such as Chinnaya v. Ramaya and Durga Prasad v. Baldeo illustrate how the doctrine is applied.
• Comparison: Indian law is more flexible than English law in recognising who can provide consideration and when.
• Criticism: Many argue that the doctrine is formalistic, but it remains a core part of enforceability.

Why Understanding Consideration Matters

Whether you are a law student preparing for exams, an aspirant for judicial services, or a practising lawyer, mastering the doctrine of consideration will help you:

• Draft valid and enforceable contracts.
• Analyse whether a client’s promise can be enforced in court.
• Avoid common pitfalls, especially when dealing with gifts, family arrangements, or time-barred debts.
• Appreciate how Indian courts balance fairness and technical rules.

Practical Tip

Always ask:

• What is the consideration here?
• Who provided it?
• Was it at the promisor’s desire?
• Is it lawful and real?

If you can answer these questions clearly, you can quickly assess the validity of any contract.

Final Thought:
While some modern laws have relaxed the rules about consideration, in India it is still a vital requirement. Understanding it thoroughly ensures you can navigate the Indian Contract Act with confidence and clarity.