Is past consideration valid in contract of guarantee?
While some agree with the interpretation that past consideration is good consideration for a contract of guarantee, majority of the decisions hold otherwise..
Is past consideration valid in English law?
"Past consideration is no consideration": consideration must be "executory" or "executed", but not "past"; that is, consideration must be supplied in the present or in the future, but things done beforehand cannot be good consideration..
What is past present future consideration in law of contract?
Consideration may be past, present, or future.
The consideration of a contract may be an act or abstinence that has already been done at the desire of the promisor, is in progress or is promised to be done in the future.
On this basis, consideration can be categorised as past, present, or future..
What is the difference between executed and past consideration?
In the case of executed consideration the promise and the act are integral parts of the same transaction; where the consideration is past the promise is given subsequent to, and quite independently of, the act..
What is the exception to past consideration in a contract?
Exceptions to the rule of past consideration: Some jurisdictions allow for the recognition of past consideration under certain circumstances, such as when it is requested as part of an existing contract or where the past consideration is expressly acknowledged and incorporated into a new agreement between the parties..
What is the past consideration rule in contract law?
A past promise or act which forms the basis of a future promise.
A promise is said to be given for moral or past consideration when the promisor's motivation for making the promise is a past benefit he received that gave rise to a moral, but not legal, obligation to make compensation..
- A contract made based on past consideration is not legally enforceable as there was no bargained for exchange and thus no consideration.
- While some agree with the interpretation that past consideration is good consideration for a contract of guarantee, majority of the decisions hold otherwise.
