After carefully reading this chapter, you will be able:
- To understand the meaning and definition of consideration.
- To enumerate the rules regarding consideration.
- To explain the various exceptions to the rule “No Consideration No Contract”.
- To identify the situations, when a stranger to the contract can sue upon it.
- To differentiate between a stranger to the contract and a stranger to the consideration.
MEANING AND DEFINITION
Consideration is an essential element of a contract. Both the parties to the contract must gain something from it or else the contract will be void. This ‘something’ is called consideration. For example, A makes a contract with B to buy his cow for 5000 rupees. Under this contract, ...