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- August 16, 2016 at 3:56 pm #333611
Hi Sir,
there are three instances where past consideration is suficient
1. Bill of exchange
2. Right to sue for a recovery of debt
3. When a request is madde for a serviceSir, I cannot understand this and what do we mean by bill of exchange. And in what ways are these past consideration
August 16, 2016 at 4:06 pm #333620A bill of exchange! These used to be in the English syllabus and they still are in the global syllabus
By definition:
A bill of exchange is an unconditional order in writing, addressed by one person to another, signed by the person giving it requiring the person to whom it is addressed to pay on demand or at a fixed or determinable future time a sum certain in money to, or to the order of, a specified person or to bearer
It’s basically an instruction (to the bank, more often than not) to pay a creditor
Say you buy goods (or services) and you don’t pay straight away … instead you give the supplier a piece of paper that satisfies the definition of a bill of exchange
The bill will have a period of time specified – Pay 90 days after date …
After 90 days, that bill has matured and is due for payment. But your bank refuses to pay it – maybe not enough funds in your account
So the creditor sues you
You claim that the bill is not enforceable because the goods that you received were delivered 90 days ago and past consideration is no consideration
Won’t work, sorry. Bills of exchange are an exception to that rule
That actually explains the first 2 from your list
I’d like the full context for the third one on your list – does the text not give you a bit of explanation?
August 16, 2016 at 5:48 pm #333659Thank you so much for the wonderful explanatin. THe third one is as follows-
When a request is made for a service this request may imply a promise to pay for it. If after that the service has been rendered the person who made the request promises a specific reqard.
August 16, 2016 at 8:43 pm #333677Hmm, ok. Because there is an implied promise to pay, the subsequent promise of a reward is merely taken as confirmation of the amount of the earlier implied promise
NB in practice it is always safer to agree on ALL major terms before starting to discharge your end of the agreement!
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