CONSIDERATION

Section 2(d) CA 1965- defines consideration

"when at the desire of the promisor,

1.the promisee or any other person has done or abstained from doing,[past]
2.or promises to do or abstain from doing something, [future]

such act or abstinence or promise is called consideration for the promise."

Section 26 CA 1965

'An agreement made without consideration is void,unless they belong to one of those categories of agreements listed in the same section as being exempted from the rule.

EXCEPTIONS

1. Natural Love & Affection Case- Re Tan Soh Sim

2. Past consideration is Good Consideration Case- Kepong Prospecting v Schmidt

3. Stature Barred Debts- Section 6 (1) Limitation Act 1953. An action to recover a civil debt must be done within 6 years. After 6 years,it will be time barred.

However there is a loophole here. Section 26(c) LA 1953- A promise to pay wholly or in part a statute barred debt, provided that it is made in writing and signed by the person to be charged therewith or by his duly authorised agent.

In the above situation above,if the debt had already exceeded 6 years,it is still recoverable, if the person who owes the money admits owing the money. However it must be done in writing and signed by the person or his agent.


FOR EXAM PURPOSES- STUDENTS NEED ONLY KNOW THE GENERAL PRINCIPLE AND THE THREE MAIN EXCEPTIONS.