ACCA LW ^Eng Syllabus B. The Law Of Obligations - Explain The Need For Consideration - Notes ^{5 / 8}

It can be goods, service money or a promise of any of these

Both parties must give some form of consideration for a contract to be legal

Therefore you often see people pay £1 for something - just so there is some consideration

There are 3 types of Consideration

Executory and Executed are generally valid

Past is generally not valid

1. Past Consideration NOT VALID because the law states that the order should be agreement first then consideration, not a past consideration then an agreement

   McArdle

   However if there was an implied agreement or promise before then that's ok

   Lampleigh v Braithwaite

2. Executed Consideration VALID. This is an action(normally done in return for a promise of money)

3. Executory Consideration VALID. This is a promise - either to pay or provide goods / services