Consideration

Consideration is another important element of a contract and any agreement made without consideration is a void agreement.

Section 26, Contracts Act 1950, provides that

"an agreement made without consideration is void".

According to Section 2(d), Contracts Act 1950,

"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 of the promise.