Present consideration, also known as "something of value," is a legal concept that refers to a benefit or a promise that is given in exchange for something else, typically in a contract or agreement. In order for a contract to be legally binding, there must be present consideration on both sides of the agreement.
One common example of present consideration is money. When an individual pays for goods or services, they are giving something of value (the money) in exchange for something else (the goods or services). Similarly, when an employee agrees to work for a company in exchange for a salary, the salary is considered present consideration.
Another example of present consideration is a promise. For instance, if one party agrees to paint a house in exchange for the other party agreeing to pay them a certain amount of money, the promise to pay is present consideration for the promise to paint the house.
There are some situations in which present consideration may not be required. For example, in a contract between family members or close friends, the relationship between the parties may be considered sufficient consideration. Additionally, contracts that are made under duress or under false pretenses may not be considered legally binding due to the lack of mutual consent.
Overall, present consideration is an important concept in contract law as it establishes the exchange of value that is necessary for a contract to be legally enforceable. It ensures that both parties are receiving something of value in the agreement and that there is mutual consideration for the promises made.
Consideration
Example of past consideration is, "A" renders some service to "B" at latter's desire. Nevertheless, certain aspects are worthy of note. A lot of effort is put into providing goods or services. So here there is no consideration hence no contract. In case of default, "A" owes to pay the principal sum at once and huge amount of interest. Thus acts done or services rendered voluntarily, or at the desire of third party, will not amount to valid consideration so as to support a contract. Past consideration is not consideration according to English law.
Present For Consideration
The limitation period of a deed is 12 years. A present consideration is something that is happening, such as the employee receiving a salary for the upcoming month. Deeds are an exception to consideration as deeds are not required to be supported by any consideration. We say that previous consideration is no consideration; it must be executed or performed in the present or future, but it must not be preceded by something done before; that is, it must be provided in the present or in the future. Failure to Provide Consideration If a party fails to provide the promised consideration, the other party can cancel the contract.
Consideration in Contract
Consideration is one of the most important aspects of a contract because it serves as the basis for each party to agree to the agreement. According to the current interpretation, a promise can be enforced if there is tangible benefit associated with it. Similarly, when an employer demands a pay-cut, there is also no contractual issue with consideration, because the employer has no legal duty to continue employing the worker. For example, when a mother creates a legal document promising to buy her son a car if he graduates with good marks. When consideration to one party to other is to pass subsequently to the maker of the contract, is said to be future consideration. As with any valid contract, the contract of guarantee must also be weighed.
