In terms of a contract, past consideration is used to mean a promise or an act that was made or performed prior to a contract . Past consideration typically comes into play when someone is trying to enforce a new promise. ... It is for this reason that past consideration can also be called moral consideration.
What is an example of a consideration?
The definition of consideration is careful thought or attention or compassionate regard for someone or something. An example of consideration is someone deciding between two options for dinner . An example of consideration is someone bringing a friend dinner who just had a baby.
What is past consideration example?
Past consideration is a promise for a voluntary act done in the past to help the party who is making promise to pay or to do something subsequently. ... Earlier past consideration was no consideration but now it is a good and valid consideration. Example : B house is on fire .
What is law of contract and explain past consideration?
The term “past consideration” refers to an act that was performed, or a promise that was made , before the new promise that is at issue and is being attempted to be enforced. Under the law, past consideration cannot constitute consideration for the new contract because it was not given for that new promise.
Can a past act be consideration?
Only consideration which is given at the time or after the promise for which it is given will be enforceable. A promise given after the consideration has been completed is unenforceable. ... The consideration which is ‘past’ would have operated as valid consideration if the act was done at the promisor’s request.
What are the three types of consideration?
- Executory or Future Consideration: Executory Consideration, as the name suggests is one which is yet to be performed. ...
- Executed or Present Consideration: Executed consideration, means the one which is concurrently provided when the promise is made.
Can consideration move from a stranger?
1872, it explicitly states the phrase ‘promisee or any other person...’ This essentially means that in India, consideration may move from the promise to any other person. However, it is important to note that there can be a stranger to consideration but not a stranger to the contract .
What are the six types of consideration?
- 1.An offer made by the offerer.
- 2.An acceptance of the offer by the offeree.
- Consideration in the form of money or a promise to do or not do something.
- Mutuality between parties to carry out the promises of the contract.
- Capacity of both parties in mind and age.
- Legality of terms and conditions.
What are the 4 types of consideration?
- Executory Consideration or Future Consideration,
- Executed Consideration or Present Consideration, or.
- Past Consideration.
What are the 3 requirements of consideration?
Each party must make a promise, perform an act, or forbear (refrain from doing something). 2.) Each party’s promise, act, or forbearance must be in exchange for a return promise, act, or forbearance. 3.)
What are the exceptions to past consideration?
- A promise was made for a debt that is prohibited by a statute of limitations. ...
- A promise for past consideration can be enforced if there was a voidable obligation involved. ...
- A promise to pay a debt that was eliminated by bankruptcy is also enforceable.
What are two exceptions to the rule requiring consideration?
One exception to the rule requiring consideration is promissory estoppel . In a bilateral contract the considerations for each promise is a return promise. In a unilateral contract, the consideration is one partys consideration is the promise and the other partys consideration is the act.
What are the exceptions to the rule of consideration?
The exception to the rule of consideration squarely falls within the purview of the statute. Indian Contract Act in section 25, categorically provides for the three situations whereby the requirement of consideration ends. It is natural to love, affection, voluntary service and payment of the time-barred debt .
What are the legal rules of consideration?
- Part payment is not good consideration.
- Consideration must move from the promisee but need not flow to the promisor.
- Consideration must be sufficient but need not be adequate.
- Consideration cannot be illusory.
- Consideration must not be past.
Is Past consideration valid can consideration move from a stranger?
The consideration may move from the promisee or any other person. This means as long as there is a consideration it is immaterial who has furnished it. In English law, consideration must move from the promisee, but under Indian Law, consideration may move from the promise or even a stranger.
What do you mean by undue influence?
Undue influence is an equitable doctrine that involves one person taking advantage of a position of power over another person . This inequity in power between the parties can vitiate one party’s consent as they are unable to freely exercise their independent will.
