No consideration no contract

How to locate a TracFone? A bargain without consideration is a contradiction in terms and cannot exist. But there are a few exceptional cases where a contract , even though without consideration , is enforceable. A contract would not valid without lawful consideration. But there can be certain situation provided by the law when the flow of consideration from one party to another is not necessary to make the contract valid.

This is a void contract. From the above-mentioned sections, we find that when there is no consideration or consideration is unlawful, there cannot be a contract. Section 1of the Contract Act lays down that no consideration is necessary to create an agency.

Remission by the promisee, of performance of the promise (Sec. 63). For compromising a due debt, i. However, the law recognizes the following exceptions to the rule of consideration.

The general rule of law is “ no consideration , no contract” , i. The exceptions have been given in Sec. Indian Contract Act. NO CONSIDERATION NO CONTRACT A promise without considerationcannot create a legal obligation. It held that there is no consideration as agreements between husband and wife are not contract because there is no intention to be legally binding. Yet, it’s rebuttable if indication with effective express statement, transaction binding in honor only, ambiguity of a statement.

Each party to a contract must be both a promisor and a promisee. They must each receive a benefit and each suffer a detriment. Because contract law was created to protect the rights and interests of parties to commercial transactions (essentially, its purpose is to ensure that people keep their promises). For example, P promises to pay Rs. The law enforces only those promises which are made for consideration.

Where one party promises to do something, it must get something in return. The consideration which is the benefit of the contract for one party (say, receiving money) is the burden of the other (say, paying money). Accordingly, gratuities are not enforceable in law. In the case of executory consideration , one party is bound by the contract by promising to do something or not to do something Sometimes, there is a dispute as to whether or not a contract is legally binding because of an alleged lack of consideration.

Section 1specifically states that no consideration is necessary to create a contract of agency. Thus, when a person is. An agent gets the commission as remuneration, but no consideration is necessary at the time of appointment agreement is made.

No consideration,No contract Explain with exception. In the absence of two directional consideration , it can be said that there is no contract at all (only Social agreement). Without consideration being given by each party to the contract , the contract can't legally binding.

If there is no consideration in an agreement, it is not enforceable by law except in certain cases. As a matter of fact, consideration is the very life and blood of every contract. In other words, a creditor can agree to give up a part of his claim and there need be no consideration for such an agreement. Consideration is the very essence of a contract. Similarly, an agreement to extend time for performance of a contract need not be supported by consideration.