Week 5 - Consideration Flashcards
1
Q
What is the definition of consideration?
A
A party giving up some right, interest or money to the other party. In exchange, the other party will act in some way
2
Q
What is executed consideration?
A
Consideration that has already happened - potentially straight away at the time
3
Q
What is an example of executed consideration?
A
Mrs Carlill using the smoke ball
4
Q
What is executory consideration?
A
Both parties promise to do something in the future (remains to be done) e.g make contract first, perform later
5
Q
Are unilateral contracts more likely to have executed or executory consideration?
A
Executed
6
Q
Are bilateral contracts more likely to have executed or executory consideration?
A
Executory