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### Consideration - Consideration means "quid pro quo", something in return. - Consideration can be anything: money, goods, services or even a promise. - Consideration may be given in the past, present or future. - Consideration must be lawful under Section 23 of the Indian Contract Act, 1872. Exa...

### Consideration - Consideration means "quid pro quo", something in return. - Consideration can be anything: money, goods, services or even a promise. - Consideration may be given in the past, present or future. - Consideration must be lawful under Section 23 of the Indian Contract Act, 1872. Example: Chanderilal promises to obtain a government job for Gadha Prasad. In return, Gadha Prasad promises to pay Chandrilal 10 lacs. This agreement is void because both the object and consideration of the agreement are illegal and unlawful. A consideration must be lawful and real. ### The Capacity of Parties - The parties to an agreement must be competent to contract. - If either of the parties does not have the capacity to contract, the contract is not valid. - Section 11 of the Indian Contract Act of 1872 states that the person willing to enter into a contract must have the following qualities: - The person must not be a minor. - The person must not be of unsound mind. - The person must be qualified by law. ### Free Consent - Consent means the parties must have agreed upon the same thing in the same sense. - According to Section 14 of the Indian Contract Act, consent is said to be free when it is not caused by: - Coercion - Fraud - Undue Influence - Misrepresentation - Mistake. Example: A owns 2 cars, one Maruti and the other Santro.