The term consideration is referred in the sense of quid-pro-quo in mercantile law which in turn means something in return. This something may refer to some benefit, right, interest or profit that may accrue to one party or it may be some forbearance detriment, loss or responsibility upon the other party. In simple words, consideration is the price for which the promise of the other is bought. According to Sir Pollock, Consideration is the price for which the promise of the other is bought, and the promise thus given for value is enforceable.
According to Section 2(d) of the Indian Contract Act defines Consideration as When at the desire of the promisor, the promisee or any other person has done or abstain 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. For example, A agrees to sell his house to B for Rs. 10,00,000. Here, B’s promise to pay Rs. 10,00,000 is the consideration for A’s promise to sell the house and A’s to sell the house is the consideration for B’s promise.to pay Rs. 10,00,000.
Yes, a past consideration is valid. The words used in Section 2(d) are has done or abstain from doing refer to past. Past consideration is something wholly done, forborne or suffered before the making of the agreement. For example, A, a minor was given the benefit of certain services by the plaintiff. The plaintiff rendered those services, not voluntarily but at the desire of A. These services were continued even after majority at the request of A, who subsequently promised to pay an annuity to the plaintiff. It was held that the past consideration was a good consideration.