Consideration

Corporate & Other Laws

Pls explain what is the distinction between past vs. present consideration? With an example

Sibi Srinivasan

CA Final

★ 22K+

24-Aug-21 12:49

564

Answers (4)

Best Answer

Past consideration: Uncle's house is on fire. A neigbour rushes to Uncle's help and saved his life. In a show of gratitude, Uncle promises to pay neighbour Rs. 1L for the help provided. In this case, for uncle's promise, it's neigbhour's past consideration. Present consideration: Uncle's house is on fire. It calls Fire brigade and promises to pay Rs.1L for service. For uncle's promise, it's fire brigade's present consideration.

Sahibdeep Singh

CA Inter

★ 14K+

24-Aug-21 13:18

Thank you sir. I understood

Thread Starter

Sibi Srinivasan

CA Final

★ 22K+

24-Aug-21 13:33

Sir, when it comes to past consideration, the offeree has no promise to make. Am I right? I mean there is only one promise. i.e., the uncle in your example.

Thread Starter

Sibi Srinivasan

CA Final

★ 22K+

24-Aug-21 13:44

Thread Starter

Sibi Srinivasan

Sir, when it comes to past consideration, the offeree has no promise to make. Am I right? I mean there is only one promise. i.e., the uncle in your example.

Yes

Reetikaa R

CA Final

★ 7K+

24-Aug-21 21:51