Question

QUESTION 12 List 2 situations where consideration is not required, and briefly give 1 reason for at least 1 of those situations as to why consideration is not a requirement. (3 points)

Answer 1

Exceptions to the ‘No Consideration No Contract’ Rule

1- Natural Love and Affection

If an agreement is in writing and registered between two parties in close relation (like blood relatives or spouse), based on natural love and affection, then such an agreement is enforceable even without consideration.

2- Past Voluntary Services

If a person has done a voluntary service in the past and the beneficiary promises to pay at a later date, then the contract is binding provided:

• The service was rendered voluntarily in the past
• It was rendered to the promisor
• The promisor was in existence when the voluntary service was done (especially important when the promisor is an organization)
• The promisor showed his willingness to compensate the voluntary service