According to Section 2(d) of the Indian Contract Act 1872, there are three kinds of Consideration, viz Past, Present and Future Consideration. In English law consideration May be present or future, but not past.
1) What is Consideration?
Consideration is necessary for the one formation of a contract. It means "something return". It is the price paid for the contract. It must be Lawful.A contract without consideration is void.
Sale of Car. In a contract for sale of a car is consideration for one party, while the price is consideration for the other party.
2) Definition of Consideration
According to Pollock Consideration is the price for which the promise of the offer is brought, and the promise thus given for value is enforceable.
Section 2(d) of the Indian Contract Act, 1872 defines consideration -
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 for the promise;
3) Kinds of Consideration:
Kinds of Consideration are as follows -
(1) Past Consideration
(2) Present (Executed) Consideration
(3) Future (Executory) Consideration
(1) Past Consideration:
In case of past consideration, the promisor had received the consideration before the date of promise, such consideration is called Past Consideration.
A's Bike on his way to office is stopped due to lack of petrol. A requested B who was petrol seller, B gave petrol to him. Later A promised B to pay Rs. 500/- in consideration of his past consideration.
In English Law past consideration is no consideration.
(2) Present consideration:
Present consideration is one in which one of the parties to the contract has performed his part of the promise, which Constitutes the consideration for the promise by the other side it is known as present consideration.
A lost his Bicycle, he makes an offer of the reward of Rs. 200 to anyone two finds his lost Bicycle. B finds the lost Bicycle and delivers to A . Here A is bound to pay Rs. 200 . The consideration, in this case, is the present consideration.
(3) Future Consideration:
Future Consideration is one in which one party makes a promise in exchange for the promise by the other side the performance of the obligation by each side to be made subsequent to the making of the contract the consideration is known as Future Consideration.
A agrees to supply wheat bags to B and B agrees to pay for them on a future date. This consideration is the future consideration.