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Hello Mike,
here is a statement from the BPP revision kit:
“past consideration is sufficient to create liability on a bill of exchange”
could you help me understand the meaning of this sentence is simple terms? firstly, i thought past consideration was not valid for anything further, unlike executed and executory consideration.
do they mean that the bill of exchange was executory/executed and still outstanding?
Thank you.
If you do something for me in January and I owe you money for those actions of yours, those actions in January are now past consideration because I haven’t yet paid you and we’re now in July
Now I issue a cheque to you in July in payment of that debt. What do you now give me in July in consideration for me issuing a cheque to you?
Those actions of yours in January are past, and past consideration is no consideration!
Ah, but in the case of a bill of exchange (a cheque is by definition a kind of bill of exchange) past consideration IS sufficient to merit the title sufficient consideration to support a bill of exchange
Does that make it any easier?
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