Specific Provisions in the Indian Contract Act, 1872:

• Section 2(d): Defines consideration as when, at the desire of the promisor, the promisee or any other person has done or abstained from doing, does or abstains from doing, or promises to do or abstain from doing something, such act, abstinence, or promise is called consideration for the promise.
• Section 23: States that the consideration or object of an agreement is lawful unless it is forbidden by law, is of such a nature that, if permitted, it would defeat the provisions of any law, is fraudulent, involves or implies injury to the person or property of another, or the court regards it as immoral or opposed to public policy.

Move at the Desire of the Promisor:Essential elements of Valid consideration

• Consideration must move at the desire or request of the promisor. Acts done or promises made at the instance of a third party or without the request of the promisor do not qualify as valid consideration.
• Example: If A, at the request of B, does or promises to do something, that is considered valid consideration.

May Move from the Promisee or Any Other Person:Essential elements of Valid consideration

• Consideration can be provided by the promisee or any other person. This means that a stranger to the contract can provide the consideration.
• Example: If A and B enter into an agreement, and C (a third party) provides consideration at A’s request, it is still valid.

Past, Present, or Future:Essential elements of Valid consideration

• Consideration can be past, present, or future. Unlike common law, the Indian Contract Act recognizes past consideration as valid.
• Example: If A has done something for B in the past, and B promises to compensate A for that act, it is valid consideration.

Must be of Some Value:

• The consideration must be something of value in the eyes of the law. It need not be adequate but must be real and have some value.
• Example: Even a nominal amount or something trivial can be considered valid if both parties agree.

Lawful Consideration:

• Consideration must be lawful. It should not be forbidden by law, fraudulent, involve injury to the person or property of another, or be opposed to public policy or immoral.
• Example: An agreement to commit a crime in exchange for money is not valid consideration.

Adequacy of Consideration:

• While the consideration must have some value, it need not be adequate. The law does not require consideration to be equal in value to what is received in return. The adequacy of consideration is typically not questioned as long as it is legally sufficient.
• Example: Selling a valuable item for a nominal price is valid if both parties consent to it.

Performance of Existing Duty:

• Performing an act that one is already legally bound to perform does not constitute valid consideration unless it confers some new benefit or detriment.
• Example: If a public servant promises to do something they are already required to do by law, it is not valid consideration.

Forbearance to Sue:

• Agreeing to refrain from enforcing a legal right (e.g., not filing a lawsuit) can constitute valid consideration if it is done at the request of the promisor.
• Example: If A owes B money and B agrees not to sue A in exchange for A’s promise to pay by a certain date, this is valid consideration.

Mutual and Reciprocal Promises:

• In contracts involving mutual promises, each party’s promise is the consideration for the other party’s promise.
• Example: In a contract where A promises to deliver goods and B promises to pay for them, each promise serves as consideration for the other.

Possibility of Performance:

• The consideration must be something that is possible to perform. An impossible act cannot constitute valid consideration.
• Example: A promise to perform an act that is physically or legally impossible is not valid consideration.

Privity of Consideration:

• The Indian Contract Act allows for the doctrine of privity of consideration, meaning a third party can provide consideration, but they must be a party to the contract to enforce it.
• Example: If A and B contract, and C provides the consideration, C can enforce the contract if C is a party to it.

Moral Obligation:

• Moral obligation alone does not constitute valid consideration unless it has some legal backing.
• Example: A promise based solely on moral grounds without legal enforceability is not valid consideration.

Part Payment of Debt:

• Part payment of an existing debt is generally not considered valid consideration for a promise to forgo the remainder of the debt unless there is some additional benefit or detriment.
• Example: If A owes B ₹1000 and B accepts ₹500 in full satisfaction, this may not be valid unless accompanied by a new consideration.

Conditional Consideration:

• Consideration can be conditional, meaning it depends on the occurrence of a specific event.
• Example: A promise to pay someone upon the occurrence of a particular event (e.g., completion of a task) is valid consideration.