Durga Prasad v. Baldeo and Ors., ILR (1881) 3 All 221

Durga Prasad constructed market facilities, including shops and a marketplace, in the town of Sahaswan. The construction was undertaken voluntarily by the plaintiff at his own expense and without any prior request or promise from the defendants. The defendants, who were local shopkeepers, subsequently began using the marketplace and associated facilities.

Thereafter, the defendants voluntarily promised to pay the plaintiff a commission on sales conducted in the market. Later, the defendants refused to honor this promise. The plaintiff instituted a suit seeking enforcement of the agreement and payment of commission.

Past Voluntary Acts Do Not Constitute Consideration: The Court emphasized that consideration must arise in exchange for a promise and must involve a present or future obligation. An act performed voluntarily and without the promisor’s request cannot subsequently become valid consideration for a later promise.

Absence of Request by the Defendants: The Court noted that Durga Prasad constructed the market entirely on his own initiative. The defendants neither requested the construction nor promised payment before the work was undertaken. Therefore, the subsequent promise to pay commission lacked legal consideration.

Gratuitous Promise Is Not Enforceable: The Court held that the defendants’ promise was merely gratuitous and founded solely upon a past voluntary act. Since no consideration moved at the request of the defendants, no enforceable contract came into existence.