ExpertMedium2 marksMultiple Choice
ACCA · Question 05 · Corporate and Business Law
Which of the following represents a valid exception to the rule that past consideration is no consideration?
Which of the following represents a valid exception to the rule that past consideration is no consideration?
Answer options:
A.
Where the past act was performed out of natural love and affection.
B.
Where the act was done at the promisor's request, and it was understood payment would be made.
C.
Where the promisee is a minor.
D.
Where the contract is in writing but not by deed.
How to approach this question
Recall the conditions established in Pao On v Lau Yiu Long.
Full Answer
B.Where the act was done at the promisor's request, and it was understood payment would be made.✓ Correct
The exception to the past consideration rule requires: 1) the act was done at the promisor's request, 2) there was an implied understanding of payment, and 3) the payment would have been legally enforceable if promised in advance.
Common mistakes
Thinking that any written contract bypasses the need for valid consideration.
Practice the full ACCA LW — Corporate and Business Law Practice Exam 1
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