BACHELOR OF BUSINESS ADMINISTRATION

Detailed explanation-1: -Generally, past consideration is not a valid consideration and has no legal value. Past consideration is consideration that has already flowed from the promisee to the promisor. That is, the promisee’s act or forbearance predates the promisor’s promise.

Detailed explanation-2: -In India, past consideration is a good consideration. It is sufficient to support a promise. Section 2(d) of the Contract Act clearly lays down that consideration may be past, present or future. Hence an agreement based on past consideration is perfectly valid in India.

Detailed explanation-3: -A past promise or act which forms the basis of a future promise. A promise is said to be given for moral or past consideration when the promisor’s motivation for making the promise is a past benefit he received that gave rise to a moral, but not legal, obligation to make compensation.

Detailed explanation-4: -Answer and Explanation: C. The consideration must be contemporaneous and a part of both parties’ understanding of the contract terms.