Pak Mat wants to give his land to his daughter, Minah, for her 21st birthday. As Minah will not be paying any money to her father, her father worried that since there is no consideration for the transfer of his land to Minah, the transfer may be void by virtue of section 26 of the Contracts Acts 1950. Advise Pak Mat.

Section 2(d) Contact Act 1950“

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 so or to abstain from doing something, such act or abstinence or promise is called consideration of the promise”

Consideration may be viewed as a sort of bargain, or price which one party pays to buy the promise or act of the other. When the promisor promises to do or to abstain from doing something, the promisee must pay a price for it. This price to be paid may be an act or abstinence or a price to perform a future act or abstinence.