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

Solutions

Expert Solution

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)

Rahul Sunny answered 1 year ago

Next > < Previous

Related Solutions

"Past consideration is no consideration". Comment

Explain the past consideration rule.

In your own words, what is consideration? Provide an example (real life or hypothetical, but not...

In your own words, what is consideration? Provide an example (real life or hypothetical, but not a published online case) of adequate consideration OR lack of consideration. Explain the circumstances surrounding your example - e.g. what did each person say, etc. Then explain how the facts you detail constitute adequate consideration or lack of consideration. For example: My two year-old is precariously holding his Winnie the Pooh cup (with no lid) filled with milk. He's standing on the carpet with...

four aspects of accounting and define and provide example of each

A. Define reaction rate with example. B. What is a rate equation? Provide an example with...

A. Define reaction rate with example. B. What is a rate equation? Provide an example with a balanced chemical equation. C. What is half-life of a reaction? Write the half-life expression for first order and second order reaction. D. Define the order of a reaction. Why order of a reaction does not depend on the stoichiometric value of a reactant? E. What is a catalyst? What specific function a catalyst play in a reaction?

Banks face challenges when making loans. These include asymmetric information, define asymmetric information, provide an example,...

Banks face challenges when making loans. These include asymmetric information, define asymmetric information, provide an example, and then discuss impacts of adverse selection. An additional risk is moral hazard, how does moral hazard have an impact?

Question