Week 5 - Consideration

Question 1

What is the definition of consideration?

Answer 1

A party giving up some right, interest or money to the other party. In exchange, the other party will act in some way

Question 2

What is executed consideration?

Answer 2

Consideration that has already happened - potentially straight away at the time

Question 3

What is an example of executed consideration?

Answer 3

Mrs Carlill using the smoke ball

Question 4

What is executory consideration?

Answer 4

Both parties promise to do something in the future (remains to be done) e.g make contract first, perform later

Question 5

Are unilateral contracts more likely to have executed or executory consideration?

Answer 5

Executed

Question 6

Are bilateral contracts more likely to have executed or executory consideration?

Answer 6

Executory