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Section 2 (d) of the Contract Act defines consideration as “When at the desire of 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 consideration for a promise”.
The analysis of this definition shows that consideration is an act (i.e., doing something) or an abstinence (i.e., abstaining from doing something). It means it is “to do” or “not to do” something.
Example-1: To do

Raj contracts to sell his Car to Kiran for ₹ 50,000/-. In this case Raj’s promise of giving his car is a consideration for kiran’s promise to pay ₹ 50,000/- to Raj. Similarly for Kiran’s promise of giving 50,000/- is a consideration for raj’s promise to give his car.



Example1 : Not to do

Amar owes Akbar ₹ 10,000. Akbar promises to Amar not to file a suit against him for one year on Amar’s agreeing to pay him ₹ 500 more. In this case, Amar’s promise to pay ₹ 500 more is the consideration for forbearance to file a suit by Akbar and for Akbar’s promise to forbear from filing a suit the consideration is ₹ 500 by Amar.


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