Acceptance and consideration

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2. Executed Consideration

TYPES OF CONSIDERATIONS
Consideration maybe executory orb executedb but must not be past. However in certain circumstance past consideration may support a contractual claim.
1. Executory Consideration
Consideration is executory where the parties exchange mutual promises.
Neither of the parties has performed its part of the contract. The whole transaction is in future.
Executory consideration is good to support a contractual claim. E.g. purchase of goods on credit for future delivery.
2. Executed Consideration
Consideration is executed where a party does an act to purchase the others promise. The act maybe partial or total performance of the party’s contractual obligation. It is good consideration to support a contractual claim.
3. Past Consideration
Consideration is past where a promise is made after services have been rendered. There is no mutuality between the parties. Past consideration is generally not good to support a contractual claim.
In Roscorla v. Thomas, the plaintiff had just bought a horse from the defendant and as he was leading it away, the defendant assured him that it was a good horse free from any vice.
The statement turned out to be untrue and the plaintiff sued for damages. It was held that the defendants promise was unenforceable by the plaintiff as consideration was wholly past.
A similar holding was held in In re McArdles Case where Mrs. McArdles spent improving and decorating the house they lived in at no ones request. The house belonged to Mrs. McArdles husband’s father and was to be sold after her
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mother-in-law’s death. The beneficiaries of the estate signed a document promising Mrs. McArdle £488 when the estate was distributed.
However no payment was made and Mrs. McArdle sued. It was held that the promise was unenforceable as consideration was past.
In certain circumstances, past consideration is sufficient to support a contractual claim.
These are exceptions to the general rule:

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