Consideration and receipt, four situations
Consideration has to exist but it does not have to be adequate, and the commonest drafting error in Indian practice is to confuse the two by reciting a rupee when the client has actually paid a crore, or nothing at all.
- 3 pages
- 61
- Word and PDF
- 14 September 2026
What it covers
- 1Consideration and receipt, four situationsss.2(d), 25, Indian Contract Act 1872
Read the opening
The first part of the format, as it downloads. Blanks are highlighted.
CONSIDERATION AND RECEIPT CLAUSES
Four sets. Use the set that matches the transaction. Do not mix them.
Set 1 — Commercial agreement supported by mutual promises
1. Consideration. Each Party enters into this Agreement at the request of the other Party and in consideration of the covenants, undertakings, representations and warranties given by the other Party under this Agreement, the sufficiency of which each Party acknowledges. In further consideration, [Name of the Customer] shall pay to [Name of the Supplier] the Fees set out in Schedule [Schedule number setting out the Fees].
2. Prior performance. The Parties record that [Name of the Supplier] commenced the Services on [Date the Supplier commenced the Services] at the written request of [Name of the Customer] dated [Date of the Customer's written request], a copy of which is annexed, and that all Services rendered from that date are governed by this Agreement and are included in the consideration under clause 1.
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