Unlawful consideration and acceptence of consideration

PRESENTATION OF BUSINESS LAW FOR BBA SEMESTER 5 UNIVERSITY OF CENTRAL PUNJAB SARGODHA

1. Un Lawful Consideration And Exception Of Consideration

2. Consideration means something in return it is actually a price which could be in form of some benefits paid by one party for the promise of another party. Example: A made an agreement with B that he will purchase his house for 20lac. Here the consideration of A is house and the consideration of B is 20lac. Consideration

3. For a valid contract considerations and objects should be lawful. Object means the purpose. Consideration means the Price of the promise. Unlawful Consideration

4. If the object or consideration is forbidden by law. Example: Smuggling If it defeats the provisions of any law. If the object or consideration is fraudulent. Example : getting signature of person on marriage certificate fraudulently. If it involves injury to person or property of other. Example : Agreement to make an injury to a person. If the court declares the object or any consideration as immoral. Case Where Consideration & Object Are Unlawful

5. Love and Affection   Agreement has to be in writing – registered under law – out of natural love and affection – parties standing in near relation to each other. Exception of Consideration

6. Abid for natural love and affection promise to give his son Ali. 1,oo,ooo. Abid puts his promise to his son Ali in writing And it has been registered. Actually there is no consideration but it is a good contract. Exmaple

7. Compensation for past voluntary service    A promise to wholly or partly compensate a person – who has already voluntarily done something for  promisor – enforceable Exception of Consideration

8. Usman find Ali purse and gives it to her. Ali promise to give Usman . 1000. There is no consideration but it’s a good contract. Example

9. Promise to pay a time barred debt Must be in writing – signed by the debtor or his specially or generally authorized agent – for payment of whole or part of the debt – the debt must have been recoverable but for the law of limitation – not necessary that new promise should expressly mention the time-barred debt Exception of Consideration

10. A owes B Rs. 1,000 but the debt is barred by the Limitation Act. A signs a written promise to pay B the sum of Rs. 1,000 Example