Sometimes a contract is cancelled by the court because it is not taken into account. This usually happens when: Some types of contracts are only valid in writing, .B. real estate transactions or contracts that last more than 12 months. These laws vary from state to state. Although oral contracts are legal, they can be very difficult to prove in court, so it is usually better to enter into a contractual agreement in writing. A gift (which is not an agreement) requires nothing in return to be valid. „Between the donor and what has been made, any gift actually given is valid and binding, but without regard“ [Declaration 1, relating to Article 25]. For example – C agreed to pay his brother D a certain amount of money every day for a year. A formal agreement was reached and registered with a court. This results in free agreements in which C is obliged to pay this amount of money to D. What is the right of consideration? The meaning and definition of consideration was set out in section 2(d) of the Indian Contract Act 1872 as follows: „If, at the request of the promisor, the promisor or another person has done or abstained or done something or evades anything, such action, abstinence or promise shall be called consideration for the promise.“ So, if B treated A during his illness but refused to accept payment from A; they are friends; and A in thanks promises to pay Rs 1,000 to the son of B, D, the agreement between A and D is invalid for lack of consideration because it does not fall within the exception.

Article 185 of the Contracts Act stipulates that no consideration is required to set up an agency. In the above case, the agreement is registered out of love and affection as well as a contractual document, so that the heirs of the deceased person have been held responsible for the specific performance of a contract. This is another exception to the principles of English law which shows that past considerations have no value in the eyes of the law, unless they are a promise or an action taken at the request of the proprotant. In a contract, consideration should only be provided at the request or request of the promisor. Any service provided voluntarily is not consideration and the person offering it cannot demand a service in return. For example, if A voluntarily took care of B while she was sick, she (A) cannot claim anything in return. And there can be no contract without consideration. The general rule is that the agreement is void without compensation.

However, there are certain exceptions to this rule under section 25 of the Indian Contract Act of 1872. The inadequacy of the recital is a fact which the Court should take into account when considering whether A`s consent was given voluntarily or not. In addition, a consideration given may be an act or service or abstinence that took place before the conclusion of the contractual agreement. In this case, however, it should be noted that the consideration is only legally valid if it was provided by the promisor at the request of the promettant. No consideration is required for the compromise of a debt due, i.e. the consent to accept less than what is due. In other words, a creditor may agree to waive part of its claim, and there is no need to consider such an agreement. Similarly, an agreement extending the period of performance of a contract does not need to be supported by consideration. If there is a written agreement signed by the debtor or his agent to settle a debt prescribed in whole or in part by the limitation period, the agreement is valid, even if it is not supported by any consideration. Section 148 of the Contracts Act defines a deposit as the delivery of goods from one person to another for a specific purpose. This delivery is made in accordance with a contract that is either returned or disposed of after the fulfillment of the purpose, according to the instructions of the person delivering it. No consideration is required for the conclusion of a deposit contract.

The defendant was found not liable and the action was dismissed. It can therefore be said that the counterpart does not always have to be something in return. It can even take the form of a risk, loss or liability suffered or assumed by a party (Currie vs Misa). Subsection 25(3) of the Contracts Act states: „This is a written promise signed by the person who is to be appointed to do so, or by his representative, generally or specifically authorized on that behalf, to settle a debt in whole or in part, the payment of which the creditor could have enforced without the limitation period of the actions.“ Here, the word consideration is used in the sense of counterpart, which in turn means something.. .