Question

When is consideration not required to modify a contact? Define “past consideration” and provide an example.

Answer 1

Consideration mean a thought or a promise which is made over-time between the two parties. It mainly exists in simple contracts but not any special contracts (legal).

Sometimes the consideration is not required to modify a contract or may be for new contract.

1. When there is contract of payment in a phased manner (not one time) consideration is not required.

2. It can’t be made over anything which is unreal or not exist/may be exist in future.

3. The consideration can’t be made over any past or present performances.

4. Moral consideration is not enforceable, so may not be sufficient.

5. Where there is no value consideration is meaningless.

Past consideration- when the promisor is motivated by any past benefit, which convinced the promisor to make any moral consideration, which is not legal. And this is not considered to be good.

If a person promises to another person for something, which the another person is already done(before the promise was made)