1.

J.lltroouction 1

(Ai h r1ef !l1atorlcaJ. ~rs~ct1.ve 3

\. 1) upto 1i+th Century .3
(a) Debt. 3
. U.) ~ert,a1n sum 3
(ii)
\111 )
~ualea deed
rroct of exact amourit. .
4

(b) lie t1nue

(1 ) l~~c overy Qr cbattel.
(11) f 'r1ce 01' Qh&t~l.
\1i1) Impaired cb.attED1.
\C) \.;cvenant. 4
(1) .t\~iJ"eement it-
(11) tieal ..
(0) accoant ,
(2) Jitter 14th 4Jentury ,.
(a) ~' Qrmw.at1Qn of dootl'in~. 5
\b) Na.l1Sf1~ ld role . 8
\0) l'cJect.1on of i1anaf1eld doctrine 8
(<1) J;'1nal settlement oi the dcctri ne. 9

(.a ) :i.heol'1es regard1ni the o1"1&;1n ot' dootl"itlc oj'

con.slderat1Qn. 1'"e:.
('.) -,Ju1d pro quo tile_,. 13
(2) 1.'$ t.I';1rnen'c tlle or,. 13
(3) i..>ynthe s 1s or
px'1nc1.ples tIJIf
debt. ana assWllpzsl.'t tneory.
actions of
1,1,
\~) ~ausa t heQry.
(5) i~cc.i(.i.e nt theory . 16
 11
mu.
(6) \..erta1.n talent. pnencmena. 17
(a) liesire f'Qr:r~l'ld~rlng Just,lee. 11
(b) .i?roblGm of 1mpoSSlb1l1tJ' o.t~
of o:.d.et1ng forme 'Or
ext.emsi ~n
aot1on. 18
\c) .Desire for: p%'9'V1d1ng re,me'ci7 usplte
Qf det1c1¢~ncy oj~ ,t'torms et act-10rUl. 18
(d) De:.s1r~ to Pl"Eh!jtU"ve Juri$tiict1on. 20
(oj .De&.ire to coooretise t.be elements
of obl1gat1on and 1nteni1on. 20

(C) Frocess of' inJecting 'the COilC$pt into tkle lnd1atl

Legal ~y$tem. 21
(1 ) j'aQtors. 22
h.,) lncoherence, confusing and multipli-
city i n the systems law of contract. 22
(b) .d!con0lll1e and admni.etl'at1'Ve tact-ore. 2:4
(c) ~$cular1sing the law of contract. 24
(0) uncertainty in the law of contrQ,ct. 2,
(e) J£'VQlut1on of nUl1t1ple s18te ms oJ.'
law of contract. 2,
(2) ~j.ma .,methodology and baclqJl'ouna.. 2,
(9) J:1me and metbode-logy. 27
(b) BaokgrQund. 28
(1) Presidency t1crwns. 29
(:1.1) ~ orus$11 Areas. )0
\C) J.bvolutlon of unut:1.pJ.e syst.em ot law ot
cMk~~ ~

itbm.a.er-1i
~nalys1$ , meaning and dime nsions of doctrine of'
cons1cierat,101'l. ~5
 11:1.

(1\) r<1ean1ng and del"1.tut1ons of' con~ 1dere;t1on.

(1) AmeJ>1can legal system.
It,
It-S
(2) homan le,al $1ste.m. 41
(3) \..lv11 legal system. 1+1
(1+) .Liongl1sn legal system. 49
(cd Agreement u..'1der seal and eOl'ls1derat1on.
('b) HeMing o.t' eonsldeI'at1Qn under the
,0
,I,:.ngllsb law. ,0
(5) J.ncllflrl legal $Y'stem. ;2
(a) .Uetln1t1on oj' con.e1derationunder
section 2 (d) of l.ndian -';ontraet Act. 52
(0) A$sent1ale of' definition.
(0) Haaniog W1d sign1f1oanee of tile
'3
phrases ueed in tll~ de/1m t10n wlaer
section 2(d) ~ ~
(1) at the desire of the promisor. 5q.
hw') ltesireor request distinot
,f'X"Q1U mere recoounendaUon. ;8
(1:>1:)) Act done Wlder m1stalf.en ool.ief. 59
(11) • 01" anyother ;per:&on' . ;9
(as,) Implioation of the aXpl'Gsslon
tl any otbt'ir person" . ~9

(bb) ~ause 01' action in case of

C .oEl~ldel'at1on mov'lng frQD anr
otber prsQ,,71. 63
(11i) lias done or abst.a.1ned from dOing. 63
(aa.) Impl1cat1Ql'l of the phrase. 63
(bb) Incapaoity and exeeuted
consideration. ~
(1") Does or abstains from dOl11g. 65 '
(aa) 14f$aningo 65
(btd 'c'Ol"bearanee as consideratiQn. 6;
\co) Mod.ern view 01' tOl"tleara.!lce as
1~ t1 on.
cons\,;tera' L~/7
~

{dd} ~1!oons1ons ·01" forbearance as

c on side r ati Qn. 68
 1v

(v) X'be e%pr~s$lQn ' .PromisG$ to ao

01' toabiltun frUIt d01ngl 70
(aa) .l.ndepeJ:ldent 'pr~m1IilCUh 10
(bb) De pantient prom1se$. 10
(co) (;onoW"r~nt 'pr'cm:.Lses. 70
(tid) .u1st1net1on between independent
Q.i.~d dependent Pl"om1sellh 71

~'ViJ lhe pbralEl • sometlUng'. 11

(6) .tkssencGl ot the te:rm eonslde:rai1ou. 13

(a) .ti;,lemt\1lnt oJ: value. 73
(1:;) hole-ment of mutual1 ty and reciprocity
Qf ob111at10fl$. 13

(h ) Categorisation Qt cons1d.eration. 14-

(1 j Gf.)Ql1 a.nti v~uuable eons1del"at.a,on. 11..
(~.d 'V&luable cons1d.eration. ".
(~ Good con~.1de:rat1on. ~
(0) JJi$tltlct1oll1 betweer! ,oOd ,and valLl8.ble
Qonsiderat1on. 15
(~) .fhxectlt.ed and exeoutory cOfis1dox'a.t1on. 16
(aJ .if;,~0cllted consideratlon. 16
(b) ~1eoutOl"Y (Hi;)rv~1del"at1.on. 71
{c) ~1titi.netion \~et\JIeen e;.tecuted and.
e~eeutory cons1derat1cn. 71
(3) Unreal consideration. 18
\4 J ilomlnal {tQns1deration. 19
(al Hs.an1ng. 19
rb) .01st1nct,1on between nomL"1al. and
illusQry cons1deration. 79
(5) Jfraudulellt C4Ju::d.de.ratlon. 80
 (6) \;;oncurrent. wld eont1nU1ng oOA$ldel'a,tlQn. 80
(a) Concurrent. cQn.s1derat1otl. 81
(td Cllmt111ui.llt& consiaerat1on. 81
(0) D1st.inotlon between cOlwurrent and.
C ont1nuit1! oonsiderations. 81

(7) Past consideration. 81

(sJ 'O~lcept (.It· past CQlls1d.era.t1on. 61
(b) :Dist.inctiQn bet\iEt€Hl past ande~ectlted
(;or,us1dera;tlon. 82
(t;) ln~d$qWlCY and insufficiency of cOl'is1derat1on. 83
. (1) I-lean1ng ot the term 1nadGQ.uao,.. 8)
(2) .lnad®Q;uacy as an evidence of 1!tl;PO~j"UQll. 81f.
(l) ~qg~St>1@11& ali t.o tne WBe~ld,ment (Jot law wlth
regax'¢i to i .nadeqaaey otcons1derQ'l;ion. 86
(4) lmprQpr1et1 oJ: the term 1l1~.nl:fflc1~ncy of
con~idel',t'4t1 i)11. 88
(5) l"ieM1ng o,K tile tt"rm 1.u sufi"'1c1ency of
QOtl$i.diJra't.1on. 89
(aJ Legiil meanlng. 89
fbJ lrust.aneesoi: 1nsufi'1c1ent eco~1derlitlo11. 89
(i) .Public d\1ty. 89
(U) ~:t.;1s t1nscontractual Qb111a.t1.on. 92
(E.\a) Cbl1gatiQ!l toward" pZ·Qm1see.9l
(hb) Obligation towarde tbl.:rd 'p erson. 9;
(6) :tbe term. lnapPI'Qpr1a'te cons1d$1"at1on 8.$ a.
subs ti tote. 98
(L) t.of.ls1dera.t1on and mot.ive. 98
( ,t'.to J ,U,xcept.icn:s t.o tb.e rule of 1.nval141ty ot contracts
witbout oonsideration. 101
(1) G~l1eral ob:ssl'Vat.io!lS. 101
 'Vi.
'agi_
(2) ~cope of .section 25 o£ lnd.1an Contract it-ct. 101
(a}Fx~oml$e or &gl'eement. mue to e.otnpensate
all'eaoy voluntary tlOil$ service. 103
(1) It In\l~t. be voluntarl service. '10)
U.l) .to must. bave o_n done tor tile
PI' omi.20l". 1 Olf,
U.11} Promisor 'to be competent
at the tim,. , 01 nee1vitil the
'0
contr'act
vOluntary sel~1Ce. 1~
(l,,) Prom1se to compensate past
ooolib1t.at1on. 105
(v) Prorn1sor's 1l1tent1otls must not be
fraudulent. 10;.

(td Promise to pa.yt1me barred debt. 106

(1) .f'r.ioo1ple. 106
(11) hequ1rement o£ \tIr1ting. 101
(iJU Debt. 108
U.v) Prom1$et b1 tbe alent. 108
'v ) r)row.1 $a by partner. 108
(v1) . Prom1.se by widow. 1 09
(vU) ~430tlnt. adJQst.me.n t and
section 2S(l) 109
las,) Mere &cknowledgeft.ent. 109
4. bb) ~.tlt1re
clum time t~red. 109
(ce) Balance. 110
(dd) ~et orr. 110
(v111}PrQm1se to pay and acknowledgement. 111
{1x j .fJ:i.st1nct1ofl bet.ween ack.'iIlQwle<lgeutent
• and promise to pay time- barr'eo.
debt. 113

(c) Promise maGle out of' natural love and

~ri'ect1on. 114-
(1) Natural lcwe and affection. 11l+-
(11 j ~$ar :re latl on" 115
 (3) Contract of agency. 116

(4) Bailment. 117

(F) Interplay of privi ty rUle and consideration. 119
.. (G) Conclusions. 123

Chapter-Ill.
Social welfare legislation touching contraetual
obligations in the mOdern Indian welfare state. 146
(A) Roots of social welfare. 146
(B) Evolution of the concept of social welfare state
in India. 1lt-7
(C) Definitions of social welfare state. 152
(D) v.rbit of social welfare legislation. 160
(1) Social welfare legislative measures and
involving contractual obligations. 160
(a) Major social legislative measures not
involving contractual obligations. 161
(b) Area covered. 161
(e) Remarks. 165

(2) bocia! welfare legislation touching

contra.ctual obligations. 165
(a) Major SOCial welfare legislative measures
touching contractual obligations. 165
(b) Areas covered. 166

(E) Effect of the concept of welfare state on the

concept of consideration. 173

Cha.pter-IV "
l!Iffect of social welfare legislation on the concept of
consideration. 189
 viii
fa.p,

(A) General effect. 189

(1) Curtailment i .o the element of freedom of
determination of consideration. 189
(2) Hodes adopted. 190
(a) Dimensional Limitation. 190
(i) Positive dimensional limitation. 191
(ii) Negative dimensional limitation. 191
(iii) Upper dimensional limitation. 191
(iv) Lower dimensional limitation. 191
(b) Modification. 193
(c) Substitution. 193
(d) Unilateral imposition. 193

(B) Critical Appraisal of Judicial position as to

the formation of contractual relationship
under t ~ le control orders and Acts in the field
of social welfare legislation. 195'

(C) Theories Regarding Contractualism in control

legislation transactions. 207
(1 ) No contractual relationship theory. 207
(2) Implied contractual relationShip theory. 208
l3) ];valuation. 209

(D) Effect of social welfare legislation in the

field of Industrial law on the element of
freedom in the determination of considerat1on. 210
(E) Boncluding remarks. 215'

c hallie r-V •
Inter-relation of doctrine of promissory-estoppel
and consideration. 221

(A) Introduction. 221

(B) Conceptual origin of the doctrine of promissory
estoppel. 225'
(C) Nature, scope, extent and development of the
doctrire of promissory estoppel. 227
(1) Americal Law. 228
(2) ~nglish law. 235
(3) Indian law. 240

(D) Interplay of promissory estoppel and

consideration. 251
(E) Pre-existing legal relation if a basic content
for the application of doctrine of promissory
estoppel. 255
(li') Detriment as a necessary content of promissory
estoppel. 259
(G) Promissory estoppel as a foundation of cause
of action. 261
(H) Promissory estoppel and section 63 ot the
Indian Contract .Act 1872. 266
(I) RecommenlaOion for legislative action on
promissory estoppel 1n relation to doctrine
of consideration. 268
(J-) Concluding remarks. 270

(., hapter-YI

Unlawful Considerations. 2b6

~A) ~cope ami extent of unlawfuJ. consideration. 286
(B) Various categories of unlawfUl consideration. 288
(1) Consideration for-bidden by law. 288
(a) Scope and extent of expression
forbidden by law. 288
(i) Imposition of penalty of amounts to
acts forbidden by law. 289
(aa) Imposition of penalty of
public order or morals. 290
(bb) Imposition of penalty for
administrative purposes. 291
(ii) ~valuation. 291
(b) Wagering contracts i f forbidden by law. 292
 (c) Doctrine of restitution and agreement
void for consideration forbidden by law. 292
(d) Effect on collateral agreements. 293
(e) Ab.s ence of plea if operates as estoppel.. 2<j+

(2)C onsideration amounting to defeating the

prwision of some law. 29,
(a) Statutory laws. 295
(b) Personal laws. 297
(1) Hindu personal law. 297
(ii) lVlehemmedcm personal law. 297
(c) Other r'ules in force. 298
(3) Fraudulent considerations. 298
(a) ocope. 298
(b) Raising of the plea of fraud in defence. 300
(i) General principle. 300
(il) Judici,a1 position. 301
(iii) ~stoppel. 302
(i v) ..dixeept1ons to the general princiPle. 302

(4) Consideration aiming at causing injury

to person or property of another. 303
(a) Injury to person. 303
{i) Physical injury_ 303
(ii)lnjury to reputation. 3~

(b) Injury to property. 30i

(i) Directly injuriOUS to property. 3~
(ii) Indirectly injurious to property. 304
(5) Immoral consideratiol1s. 306
(a) bcope. 306
(b) Sexual immorality. 308
(i) Sexual immorality interferring with
matrimonial. relations. 309
(ii) tiexual immorality not intefferring
with marital relations. 309
(aa) Future cohabitation. 309
(bb) Past cohabitation. 310
(cc) ~valuation. 311
 (6) Considerations opposed to publiC policy. 313
(a) bcope. 313
(b) li:valuat1on. 317
(c) Remarks. 318

(C) Unlawful consideration and principle of

severability. 318
(1 ) Blue Pencil rule. : 320
(2) Illegal consideration must not form main
consideration. . 320
(3) Must not alter agreement substantially. 321
(D) Concluding remarks. 322

Chapter-in.
Unblinkerir~ the unruly horse: the public policy in
relation to t :a:dbctrine of conSideration. 330
(A) FubliC policy. 330
(1) Conceptual meaning. 333
(a.) Public. 331.t
(b) Policy. 33,
(c) J'udge' s value judgement. 33,
(2) cic ope and extent. 33,
(3) Crystallisation of frontiers of' public
policy. 34-1
(a) Conservative vie'w. 341
(b) Progressive view. 341
(c) ~valuation. 342

(4) Cognisance of illegality based on public

policy by the court.

(B) Material sources of principles of publiC poliCY. 344-

(1) Constitutional policy of the state. 34,
(2) Governmel'i; policy. 34,
(3) Current PubliC pp1nion~ 345
(C) Legal status of the rules of publiC policy. 352
(1) Positivist approach. 352
(2) .P ragmatlc approach. 353
(3) ~val uat1on. ~ 353
(D) Justification of publiC policy in relation to
consideration under the contractual
obl1gations. 354
(1) Punitive justification. 356
(2) Pure foundation justifia ation. 3,7
(3) Deterrence justification. 359
(.b;) Dynamism as "che essence of public policy. 360
(F) Public policy as a contractual restriction. 367
(G) PubliC policy as a case for reform. 3?2
(H) Concluding remarks~ 377

~ hap;ter ...VIli.

Frontiers of PubliC Policy as dimensional I1mi tation

on consideration. . 384
(A) Naintenance and champerty. 388
(1) IntrOduction. 388
(2) Conceptual meaning, scope and extent of
maintenance and champerty. 389
(3) J"lldgemen'c touchstone in main~enance and
champerty agreements 1n India. 395
(4) Burden of proof. 396
(B) I:Jtiff'ling prosecution. 396
(C) Interference with the course of justice. 400
(D) Bargains of separation. 401
(E) Tradj.ng with enemy. 402
(F) Marriage brokerage agreements. 4otf.
(1) Distinction between marriage agreements
for rece1v-ing money by the parent and
marriage brokerage. 411
 xiii
!!a.p.

(2) Great disparity in age of bride and bride·

groom 'Whether opposed to publ1c policy. 418
(3) Suit for' recovery of money Paid whether
opposed to public policy. 418
(4) F'amily arrangement and inter ... marriage. 423
(5) Gifts made to bride or br1degrodm. 424
(6) Marriage brokerage a.greements to third
parties. 425'
(7) Recommendations of the law commission. 425'

(G) Agreement partitioning yaJmans. 426

(E.) Agreements to secure unfair remuneration. 426
(I) bUicide. 427
(J) Knock-out agreement. l,.2?
(K) 'lraff1cking in public offices. 428
(L) An agreement 'Which tends to .create interest
contrary to duty. 429
(M) Miscellaneous heads. 430
(N) Concluding remarks. 431

Chapter-I!
Suggestions and Conclusions. 441
Table of cases. 456
Bibliography. 472