Consideration in a Contract

Consideration is an essential element in a contract. It refers to something of value that is given by one party in exchange for something of value given by the other party. In order for a contract to be legally binding, there must be consideration from both parties involved.

Meaning of Consideration

Consideration can be anything that has value, such as money, goods, services, or even a promise to do or refrain from doing something. It is the price that each party pays for the promise of the other. Consideration ensures that both parties have a mutual obligation and benefit from the contract.

Role of Promisor and Promisee

In a contract, the promisor is the party making the promise, while the promisee is the party to whom the promise is made. The promisor is the one who provides consideration for the promise, and the promisee is the one who receives the consideration.

Movement of Consideration

Consideration must move at the desire of the promisor. This means that it is the promisor who determines the terms of the contract and what consideration they are willing to provide. The promisee cannot force the promisor to provide a specific consideration or change the terms of the contract.

Reasoning behind the Correct Answer

The correct answer is option 'A' because consideration must always be provided by the promisor. The promisor is the one who is making the promise and is therefore responsible for providing something of value in exchange. The promisee cannot dictate what consideration they want or demand something different.

Other Options

Option 'B' is incorrect because the promisee does not determine the consideration in a contract. They are the recipient of the consideration, but it is the promisor who decides what they are willing to provide.

Option 'C' is incorrect because consideration cannot be provided by any other person who is not a party to the contract. Consideration must be given by the promisor and received by the promisee.

Option 'D' is incorrect because consideration must move at the desire of the promisor. It cannot be provided by any other party or determined by the promisee.