Types of Consideration in Indian Contract Law
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Types of Consideration in Indian Contract Law

Types of Consideration in Indian Contract Law, six types of consideration, different types of consideration, types of consideration in contract law, types of consideration, types of consideration, past consdieration, unreal consdieration, conditional consideration, future consideration, executory consideration, executed consideration, present consideration, consideration meaning, past consideration is no consideration, past consideration is not good consideration, unlawful consideration in indian contract act,

Types of consideration in Indian Contract Act is not specifically not provided. Now we will discuss some different types of consideration in Indian Contract Law.  We already covered consideration meaning and all the essential elements of consideration. 

The definition of the Consideration has been provided under section 2(d) of the Indian Contract Act, 1872. Mainly, there three types of consideration as defined under the definition of consideration. But, we can see there are more kinds of considerations in the common law. So, in this article, we cover all kinds of considerations. 

Read Also: - The meaning of a contract.

There are six kinds of consideration in contract law.

  1. Executory (Future) Consideration
  2. Executed (Present) Consideration
  3. Past Consideration
  4. Conditional Consideration
  5. Unreal Consideration
  6. Illegal Consideration

1. Executory (Future) Consideration

The executory consideration or future consideration is the consideration where one or more parties make a promise that the consideration is to be performed in the future.

In simple words, in the executory consideration, the party is yet to perform his contractual obligations and also makes a promise that he/she will perform that consideration on a future date, this is called executory/future consideration.

Example: A wants to gift it to his brother on his birthday. A purchased bike from B and asked to deliver it on his brother’s birthday. Here, the delivery bike is to be performed in the future. This is an executory/future consideration example.

2. Executed (Present) Consideration

The executed consideration or present consideration is the consideration where the parties are performed their promises.

In simple words, the parties to the contract performed their contractual obligations and the performance of the contract is completed, this is called an executed consideration.

Example: A goes to a stationery shop and purchased a pen for the cost of Rs. 20/-. Here, A pays Rs. 20 which is the consideration to the shop owner and A got the pen which is the consideration to A. Both, the considerations are completed. This is called executed/present consideration.

3. Past Consideration

In a general contract, then consideration should be with the contract, but in the past consideration the act has been done already before making any promise then it is known as Past Consideration in the contract law.

According to Anson, the past consideration is no consideration and it is unenforceable in English Law. So, in Common Law, past consideration has no value and the past consideration is not good consideration.

Example: A has found a purse on the road and he searched the true owner of that purse i.e. B. A returns the purse to B. Then B gives him Rs. 500/- as a reward. This is the past consideration example.

In the above example, A acted voluntarily and returns B's Purse. This is Past Consideration.

4. Conditional Consideration

The conditional consideration is the consideration where one party imposes a request or a condition with the offeree. This is called conditional consideration.

In simple words, the offeror imposes a condition to the offeree while making an offer with the offeree to get his/her acceptance. Such a condition or request imposed on the offeree is conditional consideration.

Similarly, when the offeree imposes any condition or request before giving his acceptance is called a conditional consideration to the offeror. Let's take an example for better understanding;

Example: A makes an offer to B to buy B's house for Rs. 50 Lacs. But, imposes a condition that he will pay the amount (consideration) in instalments. This is called conditional consideration.

5. Unreal or Illusionary Consideration

When the consideration is impossible to perform or the consideration is illusionary or imaginary, then the consideration is called unreal or illusionary consideration.

And, the consideration in the agreement is only in words and has no value in the eye of law is also considered an unreal consideration.

6. Unlawful Consideration

The unlawful consideration in the Indian Contract Act, when the parties make an agreement with unlawful consideration, the contract is an illegal contract or void contract.

The consideration in the agreement is the unlawful consideration when;

  1. The consideration is forbidden by law
  2. The consideration defeat any provisions of law
  3. The consideration is fraudulent
  4. The consideration causes injury to other persons or property.
  5. The consideration is immoral and opposed to public policies.

Example: A and B entered into an agreement to buy and sell the smuggled goods. Here, buying and selling smuggled goods is illegal in the eye of the law. So, the consideration in the agreement is unlawful consideration.


In the Indian Contract Act, 1872, the definition of the consideration provided under section 2(d), itself gives three kinds of consideration. But, we have discussed all the six kinds of consideration in this article.

Referred Books:
Akash is a YouTuber by Hobbie and Blogger by Passion. He Loves to spread information that helps others to live in this legal world.

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