- This topic has 1 reply, 2 voices, and was last updated 1 month ago by MikeLittle.
- You must be logged in to reply to this topic.
ACCA Webinars: How to earn marks in Strategic Professional Exams. Learn more >>
20% off BPP Books for ACCA & CIMA exams - Get BPP Discount Code >>
Jo promises to pay a reward for the return of her lost phone. Mia finds the phone and returns
it to Jo.
Which of the following types of consideration has Mia provided?
A Executed consideration
B Executory consideration
C Past consideration
D Insufficient consideration
Correct Answer is stated as A. Why is it not B Mike since the Mia must have found the phone at later time/date. It is not like that the Jo promises Mia and the Mia has Jo’s phone in other hand and handed over the same to Jo. If this would have been the case then it must have been Executed Consideration. Logical. But finding the phone is an exercise that needed to be carried out upon accepting Jo’s promise. Why it is not Executory Consideration then?
In olden times when beheading was a punishment for criminals in England, when a person was executed, that was it! Job finished. Game over
Same with consideration. When consideration is completed, it’s done, finished. Executed
If I offer to sell you my car for €1,000 euros and you accept that offer (this is for illustration purposes only and is not intending to create legal relations) if I then allow you to take the car away with you, so far as I am concerned, my side of the agreement is completed. My consideration (the car) has been delivered
But from your point of view, you’ve still not paid me the €1,000 so your consideration (the money) has not been delivered and is therefore executory
Executed = done Executory = still to be done