Consideration Distinguished from Reciprocal Promise

Home Forums Consideration v/s Reciprocal Promise Consideration Distinguished from Reciprocal Promise

Viewing 0 reply threads
  • Author
    Posts
    • #2495
      Intern
      Participant

      What is the difference between consideration and reciprocal promise? Is every consideration a reciprocal promise, or vice-versa?
      It seems like consideration and reciprocal promise have a very thin line of difference between them but actually, they differ in many terms. Though they are the essentials of a valid contract, they differ in the way they are carried out. Consideration is a one-way process while the reciprocal promise is a two-way process just as the process of communication. Consideration is giving something in return to the act done while reciprocal promise involves giving consideration to the promisor by the promisee and also giving consideration to the promisee by the promisor. The reciprocal promise involves two considerations from both the parties to the contract to one other while consideration involves giving compensation to one party by the other party. Both of them are explained in Section 2(d) and Section 2 (f) of the Indian Contract Act, 1872. Section 2(d) says: “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.” While Section 2(f) is defined as: “Promises which form the consideration or part of the consideration for each other are called reciprocal promises.” It is also true that every consideration is a reciprocal promise but every reciprocal promise is not a consideration. because of the same above distinctions between them. A reciprocal promise is a wider concept while consideration is a narrower concept. The consideration comes under the big circle of reciprocal promise.
      For example- A proposes to sell his car for rupees 10,000 to B. B accepts this proposal. Here, the consideration is rupees 10,000 that B will pay to A for his car and the reciprocal promise is selling of car by A to B.
      – PREYANSI ANAND DESAI

Viewing 0 reply threads
  • You must be logged in to reply to this topic.
Comments are closed.