Executed consideration and past consideration

What is executed consideration? Does past consideration count as consideration? Can past consideration be included in a new contract? If you offer a reward for a lost wallet and another person finds it and gives it to you, that person’s consideration is executed.

Either may perform, or offer to perform, and thus bind the other, to fulfill or com pensate for the breach. EXECUTED AND PAST CONSIDERATIONS DISCUSSED. Promises may be done over a period with staggered exchanges of considerations e,g rental or leasing of property or office equipment etc. Consideration exchanged before promise is made.

When a new contract is written, past consideration will not count as consideration for the purposes of the contract. The reason for this is that past consideration occurred before the new contract was entere meaning it could not have been provided. Past consideration typically comes into play when someone is trying to enforce a new promise. Executed consideration.

So for example, in a contract for the sale of goods, the consideration is executed if the price is paid at the same time that the goods are delivered. It was held that C could rely on the agreement. Even though C’s consideration. B and it was understood by both sides that C would be paid and the. A consideration which is wholly performed.

Example:Richard loses his wallet and offers Bogdan a reward if he finds and returns the lost wallet. It is only when Bogdan finds the wallet and duly returns it to Richard that the reward becomes enforceable and the consideration becomes valid. In order to support a promise, a past consideration must be moved by a previous request. It is the general principle that consideration is given and accepted in exchange for the promise. When something is done or suffered before the date of the agreement, at the desire of the promisor, it is called ‘ past considera-tion.

It is something given or accepted in return for a promise, where the promised act remains to be performed on a future date. See past consideration. In deciding the case, the court discussed the doctrine that a past executed consideration will not support any promise different from that which the law implies — which is a promise to pay in praesenti, on request, and that an executed consideration will not support a promise to pay in futuro. While the doctrine is inapplicable to the facts of the said case, it clearly limits the effectiveness of past consideration for future promises.

In (2) and (3) the contract is formed by one party doing all he can be required to do under the contract. A promise in writing and signed by the promisor or by his agent shall not be denied effect as a valid contractual obligation on the ground that consideration for the promise is past or executed , if the consideration is expressed in the writing and is proved to have been given or performed and would be a valid consideration but for the time when it was given or performed. Analyze the basic legal provisions of consideration in the law of contract. INTRODUCTION The term consideration is given to the subject that is exchanged in a contract.

The most common and obvious exchange is money for goods or service. Therefore, past consideration is the benefit that you get as a result of making the contract. In other words, each person who signed. It is the price promised by one party in return for the other party’s promise.

This is because a past consideration arises where the work is done before the obligation. Past service at request past and executed An act done before the giving of a promise to make a payment or to confer some other benefit can be a consideration for the promise. Now, with regard to the meaning of these words, which you will continually hear used in legal arguments, it is this:-an executed consideration is one which has already taken place, an executory consideration one which is to take place-one is past , the other future. For example, money which has been promised to be paid under a contract which has been paid is executed consideration.

If the promise and consideration take place simultaneously then it is present or executed consideration. An example is Peter goes to a shop, buys a bag of chips and pays for the same on-spot. When the consideration for a promise moves after the contract is forme it is a future or executor.