• Skip to primary navigation
  • Skip to main content
  • Skip to primary sidebar
Free ACCA & CIMA online courses from OpenTuition

Free ACCA & CIMA online courses from OpenTuition

Free Notes, Lectures, Tests and Forums for ACCA and CIMA exams

  • ACCA
  • CIMA
  • FIA
  • OBU
  • Books
  • Forums
  • Ask AI
  • Search
  • Register
  • Login
  • ACCA Forums
  • Ask ACCA Tutor
  • CIMA Forums
  • Ask CIMA Tutor
  • FIA
  • OBU
  • Buy/Sell Books
  • All Forums
  • Latest Topics

20% off ACCA & CIMA Books

OpenTuition recommends the new interactive BPP books for March and June 2025 exams.
Get your discount code >>

Past consideration – Study Hub

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA LW Exams › Past consideration – Study Hub

  • This topic has 3 replies, 2 voices, and was last updated 4 months ago by MikeLittle.
Viewing 4 posts - 1 through 4 (of 4 total)
  • Author
    Posts
  • January 21, 2025 at 7:34 am #714865
    Iniss
    Participant
    • Topics: 53
    • Replies: 54
    • ☆☆

    In January, Ami took over an old warehouse with the intention of opening an art gallery. As the warehouse had to be converted, Ami entered into a contract with Cis to do all the necessary painting. Cis was to be paid £5,000. Cis received an initial payment of £1,000 and agreed to have the work completed by 31 March.
    At the end of February, Cis told Ami that she would not complete the work in time unless Ami agreed to increase her payment by a further £1,000. Ami agreed to ensure that the job was done on time.
    On completion of the work on time, Ami refused to make the additional payment to Cis, beyond the original contractual price.

    Which of the following are past consideration?
    A. Ami’s initial payment of £1,000
    B. Cis’s initial agreement to complete the work by 31 March
    C. The work that had been done by Cis at the end of February
    D. Ami’s agreement to pay the further £1,000

    I thought only C is past consideration, however, the model answer indicates A, B, C as past consideration.
    There was a contract entered into by Ami and Cis as in the very first part of the question and A and B clearly formed that contract.
    C is past consideration since the work done was before the promise for increase payment.
    D is just a new promise made by Ami but no consideration from Cis.

    Can you please help me clarifying this,
    Thank you.

    January 21, 2025 at 2:21 pm #714879
    MikeLittle
    Keymaster
    • Topics: 27
    • Replies: 23312
    • ☆☆☆☆☆

    The attempted ‘revision’ to the contract was at the end of February / start of March so anything before that date is past. Therefore that includes options A, B and C and leaves just option D as consideration that is not passed

    OK?

    January 22, 2025 at 3:34 am #714889
    Iniss
    Participant
    • Topics: 53
    • Replies: 54
    • ☆☆

    Oh I see the revised contract. Thank you for your explanation!

    January 22, 2025 at 8:15 am #714891
    MikeLittle
    Keymaster
    • Topics: 27
    • Replies: 23312
    • ☆☆☆☆☆

    You’re welcome – glad to be of help

  • Author
    Posts
Viewing 4 posts - 1 through 4 (of 4 total)
  • You must be logged in to reply to this topic.
Log In

Primary Sidebar

Donate
If you have benefited from our materials, please donate

ACCA News:

ACCA My Exam Performance for non-variant

Applied Skills exams is available NOW

ACCA Options:  “Read the Mind of the Marker” articles

Subscribe to ACCA’s Student Accountant Direct

ACCA CBE 2025 Exams

How was your exam, and what was the exam result?

BT CBE exam was.. | MA CBE exam was..
FA CBE exam was.. | LW CBE exam was..

Donate

If you have benefited from OpenTuition please donate.

PQ Magazine

Latest Comments

  • hana1992 on Foreign exchange risk management (2) Part 1 – ACCA (AFM) lectures
  • John Moffat on Overcapitalisation and Overtrading – ACCA Financial Management (FM)
  • ISABIRYEZA on Overcapitalisation and Overtrading – ACCA Financial Management (FM)
  • ISABIRYEZA on Overcapitalisation and Overtrading – ACCA Financial Management (FM)
  • huunghia18499 on Foreign currency- Functional currency – ACCA (SBR) lectures

Copyright © 2025 · Support · Contact · Advertising · OpenLicense · About · Sitemap · Comments · Log in