Quick Answer: What Are The Three Characteristics Of Consideration?

Consideration Meaning in LawConsideration has to move as per the desire of the promisor.Consideration may move from the promisee to another person.Consideration might be in the past, present, or future.Consideration does not need to be adequate.Consideration must be real and not illusory.More items….

What is consideration and its types?

Consideration is classified as one of two types: executed: when the promise has been performed within the meaning of the contract, or. executory: when the promise has not been performed.

What are the six types of consideration?

Types of ConsiderationMoney.Services.Personal property.Real property.Promise to act.Promise to refrain from acting.

What are the two elements of consideration?

Elements of consideration 1. A performance or a return promise must be bargained for. 2. A performance or return promise is bargained for if it is sought by the promisor in exchange for his promise and is given by the promisee in exchange for that promise.

What is a valid consideration?

Consideration is some thing of value promised by one party to another while entering into a contract. For a consideration to be valid there must be a promise from both sides. … This means that there must be a promise by one party against the promise of the other party.

What are the features of consideration?

The court in the case of Currie v Misa defined consideration as a right, interest, profit, detriment, loss, or responsibility. Its main characteristic is that the promissor must give a promise of something that is of value, and the promisee must give something of value in exchange.

What are examples of consideration?

Anything of value promised by one party to the other when making a contract can be treated as “consideration”: for example, if A signs a contract to buy a car from B for $5,000, A’s consideration is the $5,000, and B’s consideration is the car.

What are the types of consideration?

Something bargained for and received by a promisor from a promisee. Common types of consideration include real or personal property, a return promise, some act, or a forbearance. Consideration or a valid substitute is required to have a contract.

What is a form of consideration?

Form of Consideration means the proportion of cash and Common Stock that will constitute the Redemption Amount.

What are the 3 requirements of consideration?

Each party must make a promise, perform an act, or forbear (refrain from doing something).

What are the three types of consideration?

Kinds of ConsiderationExecutory Consideration or Future Consideration,Executed Consideration or Present Consideration, or.Past Consideration.

What are the essential elements of consideration?

In accordance with Section 2(d), the essential features of a valid consideration are as follows: It is given ‘at the desire of the promisor’; It may move from any person; It can be past, present or future consideration; It must be real and possess value.More items…•