Consideration in Indian Contract Act 1872

Consideration is an essential element of a valid contract as per the Indian Contract Act, 1872. It is defined in Section 2(d) of the Act as "when, at the desire of the promisor, the promisee or any other person has done or abstained from doing, or does or abstains from doing, or promises to do or to abstain from doing, something, such act or abstinence or promise is called a consideration for the promise."

Key Points:

1. **Essential Element**: Consideration is necessary for a contract to be legally enforceable in India.

2. **Bilateral Exchange**: Consideration involves a bilateral exchange where both parties provide something of value to each other.

3. **Reciprocal Promises**: Consideration can be in the form of reciprocal promises where each party agrees to do something in exchange for the other party's promise.

4. **Act or Abstinence**: Consideration can involve an act, such as delivering goods or providing services, or abstaining from doing something.

5. **Desire of the Promisor**: The act or promise must be done at the desire of the promisor for it to be considered as valid consideration.

6. **Past Consideration**: Past consideration is not valid consideration as per the Indian Contract Act, unless it was done at the promisor's request.

In conclusion, consideration is a vital component of a contract under the Indian Contract Act, 1872. It ensures that both parties receive something of value in exchange for their promises, thereby making the contract legally enforceable.