Question

Discuss what constitute lawful Consideration and lawful objects under the Indian Contract Act, 1872 along with the case law: Carlill vs. carbolic Smoke Ball Company.

26 Apr 2025
Answer :
Word Count : 1129

Under the Indian Contract Act, 1872, the concepts of lawful consideration and lawful object are fundamental to the validity of any agreement. An agreement, to become a contract, must be made for lawful consideration and with a lawful object. If either the consideration or the object is unlawful, the agreement is void and cannot be enforced by law. These principles are particularly crucial in the context of cooperatives, where members and stakeholders enter into various agreements to promote mutual economic and social interests.

Lawful Consideration under the Indian Contract Act, 1872
Section 2(d) of the Indian Contract Act, 1872 defines consideration as:
"When, at the desire of the promisor, the promisee or any other person has done or abstained from doing, or does or abstains from doing, or promises to do or to abstain from doing something, such act or abstinence or promise is called a consideration for the promise."

Consideration, therefore, refers to the price for which the promise of another is bought. It may consist of an act, abstinence, or a promise thereof. The essential elements of valid consideration are:

  1. It must be at the desire of the promisor.

  2. It may move from the promisee or any other person.

  3. It may be past, present, or future.

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