CONSIDERATION

Question 1

What is actually a consideration?

Answer 1

Sec. 2(d):
“…when at the desire of the promisor, the
promisee or any other person

(1) has done
or abstained from doing, or
(2)does or abstains from doing, or
(3)promises to do or to abstain from doing, something,
such act or abstinence or promise is called a consideration of the promise.”

Question 2

3 TYPES OF CONSIDERATION:

Answer 2

PAST CONSIDERATION :
A promise is made subsequent to and in return for an act
that already been performed.
(Act + Promise)

EXECUTORY CONSIDERATION: A promise is made in
return for another promise.
(Promise + Promise)

EXECUTED CONSIDERATION: A promise is made in
return for the performance of an act.
(Promise + Act)

Question 3

There are 4 situations whereby certain agreement will still
become a valid contract even though there is no
consideration in the agreement.

Answer 3

1. Agreement made on natural love and affection
2. compensate a past voluntary act
3. compensate an act which the promisor was legally compellable to do
4. Agreement to pay statute-barred debt

Question 4

RULES ON CONSIDERATION

Answer 4

Rule (1):
CONSIDERATION NEED NOT BE
ADEQUATE (good & valid)
Rule 2: Consideration need not necessarily come from the
promisee