Court: Allahabad High Court

Year: 1880

Citation: (1880) 3 All. 221

Judges: Chief Justice Sir Robert Stuart and Justice Oldfield

Durga Prasad V Baldeo; 1880

FACT:

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Durga Prasad had constructed some shops at the market with the promise of paying commissions on the sales made from the shop. Baldeo had spent some money for the improvement of the condition of the market on the authority of the government. The issue of a consideration was brought before the court.Durga Prasad constructed some shops in a marketplace under the authority of the government. Baldeo, among others, was allotted one of these shops. In consideration of having a shop in this improved market, the shopkeepers (including Baldeo) agreed to pay a commission to Durga Prasad on the sales made in their shops.Baldeo used the shop and made profits but later refused to pay the agreed commission. Durga Prasad sued Baldeo to recover the promised amount.

ISSUE

Whether Durga Prasad could recover the commission based on a promise made by Baldeo and others, even though the act of construction and improvements were done under government orders, not at the request of Baldeo.

HELD

The Court held that the agreement lacked consideration. Since the construction and improvement of the market were not done at the request of Baldeo, and since Durga Prasad had acted under government authority, Baldeo had not received anything in law that could be treated as consideration for his promise.

LEGAL PRINCIPLE

Under Section 2(d) of the Indian Contract Act, 1872, consideration must move at the desire of the promisor. If the promisor did not request the act that is claimed as consideration, then there is no valid consideration, and hence no enforceable contract.

JUDGEMENT:

The court nullified the agreement because of the lack of a consideration which must be as desired by the promisor.