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    PracticeACCAACCA LW — Corporate and Business Law Practice Exam 1Question 05
    Medium2 marksMultiple Choice
    Corporate and Business LawSection ASyllabus BObligations

    ACCA · Question 05 · Corporate and Business Law

    Which of the following represents a valid exception to the rule that past consideration is no consideration?

    Answer options:

    A.

    Where the past act was performed out of natural love and affection.

    B.

    Where the act was done at the promisor's request, and it was understood payment would be made.

    C.

    Where the promisee is a minor.

    D.

    Where the contract is in writing but not by deed.

    How to approach this question

    Recall the conditions established in Pao On v Lau Yiu Long.

    Full Answer

    B.Where the act was done at the promisor's request, and it was understood payment would be made.✓ Correct
    The exception to the past consideration rule requires: 1) the act was done at the promisor's request, 2) there was an implied understanding of payment, and 3) the payment would have been legally enforceable if promised in advance.

    Common mistakes

    Thinking that any written contract bypasses the need for valid consideration.
    Question 04All questionsQuestion 06

    Practice the full ACCA LW — Corporate and Business Law Practice Exam 1

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