Ex nudo pacto non oritur actio

“Ex nudo pacto non oritur actio” means “A contract without consideration is void.”

Consideration is one of the most essential element for the formation of a contract. It means something in return. It is the prize paid for the contract. Another very important point is that the consideration should be lawful. It can be either is cash or kind or otherwise. Consideration has to take place from both the sides.

For example – in a contract for the sale of house, the house is a consideration for one party and the prise paid in return is the consideration for the other party.

It has been contained in the Latin maxim – “Ex nudo pacto non oritur actio which means – out of the nude fact no cause of action arises.”
In other words a contract without any consideration is void.

The Indian Contract Act , 1872 defines Consideration as “ when at the desire of the promisor , the promise 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.”

From the above we notice that in India, consideration may be Past or Present or even Future. The words-
Abstained from doing or does – shows past tense
Abstains from doing or promises to do– shows future tense, and
Abstain from doing something– shows present tense.

For example,
A lends B Rs.100/- and B agrees to return it after a month.

A month later B is not in a position to pay back so B makes an agreement with A promising to pay back after 6 months and in the mean while A does not sue B for the money. (this becomes a Future consideration for B , A will not sue B in the Court of Law)

A remembers that he owes B because B had helped A in the past and had stood by him at the time of need. So A lets go of the money that B is unable to return.( this is Past consideration for A , in exchange of which he gives B Rs.100/-)


According to the laws of England, consideration may be Present or Future. But there is no provision for the Past consideration. Past consideration is no consideration in England.