Intention, Capacity, Consideration, and Privity 118-133

4 important questions on Intention, Capacity, Consideration, and Privity 118-133

What is executory and executed consideration?

Executory consideration is where there is a promise to do something in the future, there has been made an agreement but the action has not yet carried out. Executed consideration is that the promise has already been completed.

What is it called if a promise is made after an act has been done, which is not accepted as consideration in the eyes of the law?

It is called past consideration.

What does 'privity of contract' mean?

It means that persons who are not party to the agreement cannot be bound by its contractual terms or take action if its terms are broken.
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Are there any exceptions to the rule of 'privity of contract'?

Yes, there are a number of statutory exceptions relating to insurance policies, restrictive covenants relating to land, and bills of exchange.

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