CONSIDERATION

An agreement without a valid consideration is void unless they belong to one of those
categories of agreement listed in the same section as being exempted from the rule.
Section 2(d) Contact 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 so or to abstain from doing
something, such act or abstinence or promise is called consideration of the promise
Consideration may be viewed as a sort of bargain, or price which one party pays to buy the
promise or act of the other. When the promisor promises to do or to abstain from doing
something, the promisee must pay a price for it. This price to be paid may be an act or
abstinence or a price to perform a future act or abstinence.
Example
A lost his cat and offered a reward of RM 1000/- to anyone who finds it and returns it to A. B
finds the cat and returns it to A. Here B pays the price for A promise by performing the act
which by Sec 2(d) is the consideration of the promise.

TYPES OF CONSIDERATION
Consideration can be classified as: 1. Executory
2. Executed
3. Past
1. Executory Consideration
It is when one promise is made in return for another or a promise in return of promise.
Example: M promised to sell his mobile phone to K for RM550/- and K promised to pay the price upon
delivery by M. Here, the promise to sell is in return to promise to buy.
2. Executed Consideration
It is when a promise is made in return for the performance of an act.
Example
M lost his pen and offered RM 200/- to anyone who finds and returns the documents to him.

K found Ms pen in response to the offer and returns them to M. By returning the pen, K has
given consideration to Ms promise to pay. Should M refuse to pay, K may take an legal
action against him.
3. Past Consideration
Where a promise is made subsequent to and in return for an act that has already been
performed, the promise is made on account of a past consideration.
Example
If K finds and returns Ms pen and in gratitude, M promise to pay K RM200/- the promise is
made in return for a prior act.
CONSIDERATION :It is defined in the following words : "When at the desire of the promiser the promisee has
done or abstained from doing or does or abstains from doing such act is called a
consideration for the promise."
In other words "Consideration is a reward accepted or given in return for the promise. it is a
fact that without consideration agreement is not valid."

ESSENTIALS OF CONSIDERATION
1. By Promisee :Consideration by the promisee or any other person.
2. Desire of the Promisor :It should be given at the desire of the promisor.
Example 1 :- Mr. Shah agrees to sell his "house for Rs. Twenty lac to Mr. Amit. Now Mr.
Amit promises to pay the such amount is the consideration for Mr. Shah's promise.
Example 2 :- Mr. Donalnd a promisor agrees with Mr. Kim that if he will abstain himself
from filling a suit then he ( Mr. Donald ) will pay him Rs. Ten thousand. In this situation Mr.
Kim abstained from filling suit is a consideration for Mr. Donald.
3. Consideration May Be Past, Present or Future :Consideration is an act which has already been done or in progress or to be done in future at
the desire of the promisor.
i. Past Example :- Mr. Nash lost his car and Mr. Frank a finder delivers it to him. Mr. Frank
can not demand payment of his services due to the past consideration.
ii. Present Example :- Mr. Ali sells a house to Miss Sana. She pays its price immediately. It
is called present consideration.

iii. Future Example :- Mr. Shah promises to deliver a shop to Mr. Khan after a one month
for Rs. 1 lac upon the promise of Mr. Khan to pay the agreed price at the time of delivery. It
is called future consideration.
4. Must be Real :Consideration must be realistic and competent. If consideration is physically impossible,
illegal and uncertain it will be not valid.
5. Needs Not To Be Adequate :The law only insists on the presence of consideration and not on its adequacy. Inadequacy
may create the doubt about the free consent of two parties but it is valid if free consent is
proved.
Example :- Mr. Kullo agrees to sell his house for Rs. 25 lac. If the consent of Mr. Kullo is
free then agreement is valid contract, without consideration.
6. Lawful Consideration :Consideration should be unlawful because it can not form a valid contract. It should not be
against the public policy.

CONTINGENT OR CONDITIONAL CONTRACTS :If any contract performance depends upon the happening or not happening of the some
uncertain event of future is called contingent contract.
Contingent contracts usually occur when both negotiating parties fail to reach an agreement.
The contract is characterized as contingent because the terms are not final and are based on
certain events or conditions occurring.
Example :- Mr. Anwar contracts to Miss. Razia to pay Rs. one thousand if her father dies
next month. Same is the situation with the insurance contract.
Examples:
(i) A contracts to pay B Rs. 10,000 if B's house is burnt within a year.
(ii) A agrees to buy an old T.V. set subject to the approval of his electrician

Essential of Contingent Contract :1. The basic essential for the contingent contract is that its performance depends upon the
happening or non-happening of uncertain future.

2. Contingency depends upon the act of the party and not on the wish of the party.

3. Contingency condition is also necessary. The happening or non-happening of the event

must collateral to the subject matter of the contract.
Describe the law of arbitration, modes of arbitration and what can be
referred.
FEMA

CAVEAT EMPTOR, Offer and Acceptance., QUASI CONTRACT, BAILMENT, FIRE

INSURANCE, AGENCY(Creation & Termination), BREACH OF CONTRACT,
ESSENSIALS OF VALID CONTRACT, APPPONMENT AND POWERS OF
DIRECTORS, SALE VS. AGREEMENT TO SELL, CONDITION VS.
WARRANTY,UNPAID SELLER RIGHTS, ORDINARY VS. SPECIAL RESOLUTION,
FRAUD VS. MISINTERPRETATION, VALID VOID AND VOIDABLE CONTRACTS,
METHODS OF DISCHARGING A CONTRACT, PARTNERSHIP
NI, CONSUMER PROTECTION ACT
Refer slide
RELIEFS AVAILABLE TO CONSUMER Annamalai pg_- 329
PROSPECTUS
http://www.lawman.ml/2012/03/prospectus-in-company-law.html#.VnmRqfl97IU
Abridged Prospectus
Abridged Prospectus' is a shorter version of the Prospectus and contains all the salient
features of a Prospectus. It accompanies the application form of public issues.
Abridged Prospectus" means the memorandum as prescribed in Form 2A under subsection
(3) of section 56 of the Companies Act, 1956. It contains all the salient features of a
prospectus. It accompanies the application form of public issues.
Different modes of winding up a Company
http://thelawstudy.blogspot.in/2015/03/winding-up-company-and-its-different.html

Deficiency in Services
The provisions of Consumer Protection Act, 1986 lays down the meaning of service as
service of any description which is made available to potential users and includes, but not
limited to, the provision of facilities in connection with banking, financing insurance,
transport, processing, supply of electrical or other energy, board or lodging or both,
housing construction, entertainment, amusement or the purveying of news or other
information, but does not include the rendering of any service free of charge or under a
contract of personal service. Deficiency has been defined as any fault, imperfection,
shortcoming or inadequacy in the quality, nature and manner of performance which is
required to be maintained by or under any law for the time being in force or has been
undertaken to be performed by a person in pursuance of a contract or otherwise in relation
to any service. The categories of service include Banking, Financing, Insurance, Transport,
Processing, Supply of Electrical or other Energy, Lodging, Housing, Construction,
Entertainment, Amusement, News or Information.
Debenture
A promissory note or bond offered by a corporation to a creditor in exchange for a loan, the r
epayment of which is backedonly by the general creditworthiness of the corporation and not
by a mortgage or a lien on any specific property.
Debenture is most important instrument and method of raising the loan capital by the
company. A debenture is like a certificate of loan or a loan bond evidencing the fact that the
company is liable to pay a specified amount with interest and although the money raised by
the debentures becomes a part of the company's capital structure, it does not become share
capital.
Section 2 (30) of the Companies Act, 2013 define inclusively debenture as "debenture"
includes debenture stock, bonds or any other instrument of a company evidencing a debt,
whether constituting a charge on the assets of the company or not.