This document defines and provides examples of consideration in contracts. Consideration is something of value exchanged between a promisor and promisee in a contractual agreement. There are three types of consideration: past consideration which is value provided before an agreement; present consideration which is value exchanged simultaneously with a promise; and future consideration where both parties' obligations are to be fulfilled at a future date. Examples are given for each type of consideration in a contractual agreement.

1. CONSIDERATION

2. Something of value (either a
promise, an act or an object) that
a promisor receives from a
promisee in return for his promise.
Concept of value offered by
promisor and accepted by the
promisee.
WHAT IS CONSIDERATION?

3. If Ahmad made a contract to buy a car from Man with
RM500 000. So, the consideration for Ahmad is the
RM500 000. So the consideration for Man is the car.

4. TYPES OF CONSIDERATION
Past Consideration Present Consideration Future Consideration

5. When something is done
before the date of
agreement request by the
promisor
PAST CONSIDERATION
EX: Man give a tutor to Sarah’s
daughter on Jan 2017. On Feb 2017,
Sarah pay Man for his service
(The service is past consideration)

6. PRESENT
CONSIDERATION
When something is move
together or
simultaneously with the
promise.
EX: Najwa sell a house to Bakar.
Najwa pays the price immediately.

7. FUTURE
CONSIDERATION
When the consideration
on both side move to
the future date.
EX: B promise to sell an deliver ten bags of
bread to S for RM5000 after a week. B promise
to pay the agree price (RM5000) at the time of
delivery. So the promise of B is support by the
promise of S. Consideration is happen on both
party

8. Lampleigh v Braithwaite