Consideration

Question 1

When a promise is made to forgo the legal right of payment until the happening of an event, can promissory estoppel estop the recovery of payment from after the event is occurred?

Answer 1

No, normally the claimant will be estopped from claiming payment in arrears.
However, if the promise was to forgo payment until an event occurs, once that event has occurred the claimant has a right to the payment in arrears from that date.

Question 2

What are the exceptions to the general rule that a past act cannot amount to good consideration?

Answer 2

• The act was done at the promisor’s request
• A mutual understanding at the outset that the act would be rewarded in some way
• Had the promise of payment been made in advance there would have been the necessary intention to create legal relations

Question 3

Is paying a lesser sum of money owed earlier than it is due sufficient consideration?

Answer 3

Yes, paying earlier a lesser sum owed is sufficient consideration