First Principles of Business Law
Quiz: Making a contract 

Question 11

 

 

 

A says to B:  “When I leave Australia to go home to Japan, I will give you my motorcycle.  You don’t need to give me anything in exchange because you lent me all your camping equipment when I went on holiday last month.”   In the light of these facts, which one of the following answers is the most accurate? 

 

(a)  In the circumstances, the loan of the camping equipment to A by B is likely to be treated as ‘executed consideration’. 

(b)  In the circumstances, the loan of the camping equipment to A by B is likely to be treated as ‘illusory consideration’. 

(c)   In the circumstances, the loan of the camping equipment to A by B is likely to be treated as ‘past consideration’. 

 

 

 

 

 

 

 

  
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