Consideration - Indian Laws - General

Word Consideration Webster s Third New International Dictionary (unabridged) defines, consideration thus: Something that is legally regarded as the equivalent or return given or suffered by one for the act or promise of another. In Salmond on Jurisprudence, the word consideration has been explained in the following words: A consideration in its widest sense is the reason, motive or inducement, by which a man is moved to bind himself by an agreement. It is for nothing that he consents to impose an obligation upon himself, or to abandon or transfer a right. It is in consideration of such and such a fact that he agrees to bear new burdens or to forego the benefits which the law already allows him. The gist of the term consideration and its legal significance has been clearly summed up in Section 2(d) of the Indian Contract Act which defines consideration thus: 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 to the promise. [M/S. TATA MOTORS LTD.- 2023 (5) TMI 744 - SUPREME COURT]