ExpertHard2 marksMultiple Choice
ACCA · Question 05 · Syllabus B: The law of obligations
In contract law, past consideration is generally not valid. However, there are exceptions. Which of the following conditions must be met for past consideration to be valid under the rule in Lampleigh v Brathwait?
In contract law, past consideration is generally not valid. However, there are exceptions. Which of the following conditions must be met for past consideration to be valid under the rule in Lampleigh v Brathwait?
Answer options:
A.
The act must have been done at the promisor's request.
B.
The parties must have understood that the act was to be remunerated.
C.
The payment must have been legally enforceable had it been promised in advance.
D.
All of the above conditions must be met.
How to approach this question
Recall the three-part test for the exception to the past consideration rule.
Full Answer
D.All of the above conditions must be met.✓ Correct
The general rule is that past consideration is no consideration (Re McArdle). The exception (Lampleigh v Brathwait / Pao On v Lau Yiu Long) requires three elements: 1) the act was done at the promisor's request, 2) there was an understanding of remuneration, and 3) the promise would have been enforceable if made in advance.
Common mistakes
Selecting only one of the conditions instead of recognizing that all three are required.
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