Mnemonics: Consideration

Essential Elements of Valid Consideration

What needs to be memorized: Six essential requirements for consideration to be valid under Indian Contract Act, 1872

Mnemonic: "Desi Maa Prepares Awesome Real Naan"

🔗 The Breakdown:

• Desi → Must move at the Desire of the promisor
• Maa → May move from the promisee or any other person (not necessarily the promisee)
• Prepares → May be Past, Present, or Future consideration
• Awesome → Need not be Adequate, but must be something of value in the eyes of law
• Real → Must be Real and not illusory or vague
• Naan → Must Not be illegal, immoral, or opposed to public policy

Exceptions to "No Consideration, No Contract" (Section 25)

What needs to be memorized: Five situations where agreements are valid even without consideration

Mnemonic: "Nani Cooked Paneer Curry Again"

🔗 The Breakdown:

• Nani → Natural love and affection (written, registered, between near relatives)
• Cooked → Compensation for past voluntary services
• Paneer → Promise to pay a time-barred debt
• Curry → Completed gifts (no need to return)
• Again → Agency - no consideration needed to create agency (Section 185)

Natural Love and Affection Exception - Special Conditions

What needs to be memorized: Four mandatory conditions for the natural love and affection exception to apply

Mnemonic: "Wedding Register - Near wale, Natural pyaar"

🔗 The Breakdown:

• Wedding → Agreement must be in Writing
• Register → Agreement must be Registered
• Near wale → Must be between Near relatives
• Natural pyaar → Must be made on account of Natural love and affection

Memory Tip: Think of a wedding - you need written vows, registered marriage, between family (near relatives), all based on natural love!

Types of Consideration Based on Time

What needs to be memorized: Three types of consideration classified by when the act is performed

Mnemonic: "PPF investment - Past se Future tak!"

🔗 The Breakdown:

• P (First P) → Past Consideration - Act done before the promise (Kal kiya tha)
• P (Second P) → Present/Executed Consideration - Act done simultaneously with promise (Aaj kar raha hoon)
• F → Future/Executory Consideration - Act to be done after the promise (Kal karunga)

Memory Tip: Just like PPF covers your past, present, and future savings, consideration also covers all three time periods! Remember: Past consideration IS VALID in India (unlike England).

Stranger to Consideration vs Stranger to Contract

What needs to be memorized: Critical distinction between who can sue in these two scenarios

Mnemonic: "Consideration mein Chalta hai, Contract mein Nahi Chalta"
(In consideration it works, in contract it doesn't work)

🔗 The Breakdown:

• Stranger to CONSIDERATION → CAN sue ✓
  Rule: Privity of consideration is NOT required in India. Even if you didn't provide consideration, you can sue if you're a party to the contract.
  Example: A promises B to pay C. Here C is stranger to consideration but CAN sue because he's party to contract.
• Stranger to CONTRACT → CANNOT sue ✗
  Rule: Privity of contract IS required. Only parties to a contract can sue.
  Example: A and B make a contract to benefit C. C is stranger to contract and CANNOT sue.

Cricket Analogy: Consideration is like IPL - 12th man (substitute) bhi khel sakta hai. Contract is like World Cup playing XI - only those 11 listed can play!