The third essential of a valid contract is the presence of consideration. Consideration is something in return. It may be some benefit to the other party. Consideration is stated as the price paid by one party for the promise of the other. An agreement is enforceable given or obtained is the price for the promise and s called consideration. Consideration is the reason of an agreement only those considerations are valid which are lawful. According to the section 23 the consideration of an agreement is lawful if it is not forbidden by law, fraudulent, involves injury to the person or any property different to public policy.
A agrees to sell his house to B for rupees 10 lack. B promise to pay a sum of amount is the consideration for A.
Capacity of parties: An agreement is enforceable only if it is entered into by parties who possess contractual capacity. It means that the parties to an agreement must be competent to contract. According to section 11 in order to be competent to contract the parties contracting by any law to which they are subject. A contract by a person of unsound mind is void from the beginning. So these elements may be considered for the consideration in the contract.
A agrees to sell his house to B for rupees 10 lack. B promise to pay a sum of amount is the consideration for A.
Capacity of parties: An agreement is enforceable only if it is entered into by parties who possess contractual capacity. It means that the parties to an agreement must be competent to contract. According to section 11 in order to be competent to contract the parties contracting by any law to which they are subject. A contract by a person of unsound mind is void from the beginning. So these elements may be considered for the consideration in the contract.
