Section 2 d explained: this guide covers what it means, who it applies to, the step-by-step process, documents required, fees, due dates and penalties in India — so you can stay compliant with confidence and avoid costly mistakes.
Clause (d) of section 2 defines "consideration", the thing given or promised in return for a promise. In one sentence, the Act says that an act, an abstinence or a promise, done or made at the desire of the promisor by the promisee or any other person, is called a consideration for the promise.
Under 2(d), 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 abstain from doing, something, that act, abstinence or promise is called a consideration for the promise. The words cover acts that are past, present or promised for the future, and they do not require the consideration to move from the promisee alone. Section 2 carries no illustrations; the Act's illustrations to section 23 show consideration at work.
The text, broken into parts
Clause (d) reads: "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".
| Part of the text | What it adds |
|---|---|
| "at the desire of the promisor" | The act or promise must be done at the promisor's desire |
| "the promisee or any other person" | The consideration may come from the promisee or from someone else |
| "has done or abstained from doing" | Past act or abstinence |
| "does or abstains from doing" | Present act or abstinence |
| "promises to do or to abstain from doing" | A promise for the future |
| "something" | The thing may be an act, an abstinence or a promise |
If you are drafting an agreement and want the consideration clearly stated, our agreement drafting service can help you set it out so that each side's part is plain.
"At the desire of the promisor"
This is the anchor of the definition. The act or promise must be done at the desire of the promisor, the person who made the proposal as defined in section 2(a) to (c). The text does not use words like "benefit" or "detriment". It says only that the thing is done at the promisor's desire. We do not add further tests that the clause does not state.
"The promisee or any other person"
The clause says the act, abstinence or promise may be by "the promisee or any other person". On the words of the Act, the person who gives the consideration need not be the promisee. Whether a person who is not a party to the agreement can sue on it is a question that has been worked out in case law, which is outside this article. What the section says is only that the consideration may be given by "any other person".
Past, present and future
The clause uses three tenses:
- "has done or abstained from doing": something already done;
- "does or abstains from doing": something being done now;
- "promises to do or to abstain from doing": something to be done later, promised now.
The Act therefore uses a single word, consideration, for all three. Section 25(2) later deals with a promise to compensate a person who has already voluntarily done something for the promisor; read it with this clause, as in our article on section 25. We do not try here to say how past acts operate in ordinary contracts beyond what the text says.
An act, an abstinence or a promise
The three forms are:
- An act, such as delivering goods, paying money or doing work.
- An abstinence, such as agreeing not to enter a market, not to sue, or not to sell to a third party.
- A promise, to do or not to do something later.
A mutual exchange of promises therefore works naturally: each promise is the consideration for the other. Clause (e) of section 2 builds on this by calling every set of promises that form the consideration for each other an agreement; we cover clauses (e) to (j) in a separate article.
The Act's own illustrations on consideration
Section 2 has no illustrations. But the Act's illustrations to section 23 show the idea in use, and they are worth restating in plain words:
- Section 23, illustration (a): A agrees to sell his house to B for 10,000 rupees. B's promise to pay is the consideration for A's promise to sell, and A's promise to sell is the consideration for B's promise to pay. The Act calls these lawful considerations.
- Section 23, illustration (c): A promises, for a certain sum paid to him by B, to make good to B the value of his ship if it is wrecked on a certain voyage. A's promise is the consideration for B's payment, and B's payment is the consideration for A's promise.
- Section 23, illustration (d): A promises to maintain B's child, and B promises to pay A 1,000 rupees yearly for the purpose. Each promise is the consideration for the other.
These come from the Act's illustrations to section 23, not from section 2. They are useful here because they show both a payment as consideration and a promise as consideration. See our article on section 23 for how consideration must also be lawful.
A modern example (ours, not the Act's)
Kavita runs a small accounting practice. She tells Imran, a shop owner: "If you pay me an annual fee, I will file your returns every year." Imran says yes. Kavita's promise to file the returns is at Imran's desire and is the consideration for his promise to pay; Imran's promise to pay is at Kavita's desire and is the consideration for her promise. Each promise is the consideration for the other.
Now suppose Imran's brother, Faiz, pays Kavita's fee on Imran's behalf, at Kavita's request that the fee be paid. On the words of 2(d), the consideration may be given by "any other person" at the promisor's desire. Whether the brother can enforce anything himself is a different question that the clause does not answer.
What can the parties change?
Section 2(d) is a definition. The parties cannot change what the Act means by "consideration", but they decide what the consideration in their own contract is: money, services, goods, an abstinence or a promise. Whether a promise with no consideration is enforceable is for section 25. Whether the consideration is lawful is for section 23. Inadequate consideration is the subject of Explanation 2 to section 25.
Practical points
- State the consideration in the agreement. Say what each side gives or promises.
- Tie the performance to the promisor's request. The clause is built on the promisor's desire.
- Be clear about who pays. If someone other than the promisee will give the consideration, say so.
- Remember section 23. Even if a consideration exists, it must also be lawful.
Need help with the consideration clause?
Disputes often start because the agreement never says plainly what each side gives. Our agreement drafting team can write the consideration, payment and performance terms so that they match what the parties actually intend.
Key takeaways
- Consideration is an act, abstinence or promise done or made at the desire of the promisor (2(d)).
- It may be given by the promisee or any other person.
- The clause covers past, present and promised acts or abstinences.
- Section 2 has no illustrations; the Act's illustrations to section 23 show consideration in use.
Read next
- Section 2(a) to (c): proposal, acceptance, promise, promisor and promisee
- Section 23: lawful consideration and lawful object
- Section 25: agreement without consideration and its exceptions
Disclaimer: Based on the text of the Indian Contract Act, 1872 as consulted on 1 October 2026. Many questions under this Act turn on case law and on the wording of the particular contract, which this article does not cover. It is general information, not legal advice; check the official text and take advice before acting.