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TABLE OF CONTENT

List of Abbreviations…………………………………………………… 02
Introduction……………………………………………………………..03
Meaning And Definitions……………………………………………….04-06
Void Agreements…………………………………………………………06
Conclusion……………………………………………………………….07
Bibliography…………………………………………………………….07

Abbreviations
HC High Court
Rs. Rupees
s. section
ICA Indian Contract Act
u/s Under section
Vol. Volume

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 Introduction

The present assignment delineates the important facets of the consideration.

What consideration would not create pitfall for the contract. This project delves
into the significance of non-illusory promises in the context of contract law,
examining how the clarity and definiteness of contractual commitments
contribute to the validity and enforceability of agreements. Illusory promises,
characterized by vague or conditional language allowing one party to evade
performance at their discretion, pose a substantial risk to the mutuality required
for a binding contract.

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 MEANING AND DEFINITIONS
According to Blackstone, “Consideration is the recompense given by the party
contracting to other.”1
In Thomas v. Thomas2 case Justice Patterson mentioned, “Consideration means
something which is of some value in the eyes of law….it may be some benefit
to the plaintiff or some detriment to the defendant.”
In Fazalaldin Mandal v. Panchanan Das 3 , the Calcutta High Court interpret the
term consideration again, “Consideration is the price of the promise, a return ot
quid pro quo, something of value received by the promise or inducement of the
promise.”
In Indian Contract Act 1872, Consideration is defined u/s 2(d) which states,
“When, at the desire of the promisor, the promise or any other person has done
or abstained from doing , or does abstains from doing, or promises to do or
abstain from doing, something, such act or abstinence or promise is called a
consideration for the promise.”4
In the simplest terms it can be say that the following are the essential elements,
1. consideration must be at the desire of the promisor,
2. reciprocal exchange
3. lawful object
4. Not illusory
The present paper is all about the fourth essential element which is “not
illusory.” Before delving into the fourth essential element, let’s have a fair idea
about the first three elements,
1. consideration must be at the desire of the promisor
An Act shall not be a good consideration for a promise unless it is done at
the desire of the promisor.5
2. Reciprocal exchange:- It can be understand through a famous maxim
“quid pro quo” which means something for something. Both the
contracting parties must have some sort of obligation towards each other.
The lack of exchange would lead contract to become void in nature.

1
Definition by Blackstone.
2
(1842) 2 QB 857.
3
AIR 1957 Cal 952.
4
Indian Contract Act, 1872.
5
Consideration, Indian Contract Act by Avtar Singh

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 Illustration I A promised to purchase 100 boxes of pencil from B’s shop and
B has given the acceptance to this purchase but later on B found that A is his
maternal cousin and provided these boxes free of cost to A. In this A has not
performed his part. It is lacking reciprocal exchange.
3. Lawful Object:- Section 23 of Indian Contract Act 1872, lays down
elements for “What consideration and objects are lawful, and what not”
s.23 The consideration or object of an agreement is lawful, unless—
it is forbidden by law; or
is of such a nature that, if permitted, it would defeat the provisions of any
law; or is fraudulent; or
involves or implies, injury to the person or property of another; or the Court
regards it as immoral, or opposed to public policy.
In each of these cases, the consideration or object of an agreement is said to
be unlawful. Every agreement of which the object or consideration is
unlawful is void.6
The phrase ‘forbidden by law’ consists wider interpretation as given u/s 26, 27,
28 and 30 of ICA, 1872. If we’ll understand the meaning of this phrase word by
word then it would mean something which is prohibited under the given
provisions.
4. Not illusory
The promise which lacks merit and certainty can be said as illusory promise or a
promise that is unenforceable due to indefiniteness or lack of mutuality, where
only one side is bound to perform. The promise is normally a statement that
seems to be an offer or agreement, but is so vague, ambiguous or conditional
that it does not actually obligate the promisor to do anything at all. 7
Illustration II :- X offers to Z to purchase ball pens at Rs.60. Z has accepted this
offer.
When we analyse the offer which is given by X to Z to purchase ball pens at
rupees 60. It seems to be ambiguous because it lacks certainty. It is not
mentioned by X that how many ball pens he’ll give at Rs.60.
Illustration III :- M promised to purchase B’s cycle at basic price. B agrees for
the same.
6
Chapter II, section 23, Indian Contract Act, 1872.
7
https://www.law.cornell.edu.in illusory promise.

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Analysis :- What is the basic price? Is it possible to define certain amount as
basic price? Basic price varies from person to person as per their income and
expenditure. It is possible that for me the basic price would be 1000 rupees, for
my friend it can be 2000 rupees and for M it could be 50 rupees also.
It is not barred by the original promise that how much would be consider as
basic price.
Illustration IV:- D promised to sell his Innova Crysta Car at Rs.1,00,000/- and
added that car has no mechanical error but G said that he’ll purchase it at
nominal amount. Further, D stated that what would be the actual amount paid by
you(G) ? G quoted 95,000 rupees. D agrees on the same.
Here one more concept has entered into the background which is ‘promissory
estoppel’ which is “at the desire of the promisor”, it means if the promisor with
his free consent (defined u/s14) provides his assent to enter into the agreement
which is inadequate in nature would be enforceable. It is clear through above
given illustration IV, D has given his assent to sell his innova crysta car at
95,000 rupees. The amount 95,000 is too low price for the innova crysta
because the market price of the same is around 12-15 lakhs. Here, the
consideration is inadequate but there is no ambiguity in terms of the contract.
Therefore, it would be enforceable because it is not void.
VOID AGREEMENTS
The term void means something which cannot enforce or lacks enforceability
power. S.24 to 30 of ICA, 1872 deals with void agreements and lays down the
essential elements of a contract to become void.
As this paper aims to establish two fundamental relation between the
consideration and lack of consideration resulted in void agreements. It is not
necessary that always the contract would become void when there is inadequate
consideration. Inadequacy would be judge through free consent, if consent of
the promisor and promise was free at the time of formation of the contract then
inadequacy does not matter.
In the above given illustration IV it would not matter that what is the actual cost
of Innova Crysta in the market because both the contracting parties had agreed
to perform the contract freely and there was no undue influence.

CONCLUSION

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It is clear through this paper that the amount of consideration does not matter if
the consent was free. But if the term of the contract is ambiguous, void or not
certain then it would not be enforceable. The principle of non-illusory promises
is foundational to the enforceability of contracts, emphasizing the necessity for
parties to engage in genuine and binding commitments. To ensure the validity of
contracts, parties should craft agreements with clear, specific and mutually
binding terms, avoiding language that grants one party unchecked discretion.
The law expects contracts to reflect a true exchange of value, where both sides
assume concrete obligations.

BIBLIOGRAPHY
1. Indian Contract Act, 1872.
2. Law of Contracts & Specific Relief by Avtar Singh
3. SMU Law Review, Vol. 44, Issue 2, Promissory Etoppel And Reliance
on Illusory Promise.

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