CA Foundation Exam > CA Foundation Questions > An Executed Consideration is :a)An act of mut...
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An Executed Consideration is :
- a)An act of mutual exchange of promises
- b)An act done in the expectation of a proposal
- c)An act done in response to a positive promise
- d)All of the above
Correct answer is option 'C'. Can you explain this answer?
Verified Answer
An Executed Consideration is :a)An act of mutual exchange of promisesb...
An act done in response to a positive promise
Description: A consideration which consists of the performnance, it is "executed" i.e. an act done in response to a positive promise. Where it consists only of a promise it is executory. For example where A pays Rs. 5,000 to B to deliver certain quantity of rice, to which B agrees, here consideration for B is executed by 'A' as he has already paid Rs 5,000 where as B's promise is executory as he is yet to deliver the rice.
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An Executed Consideration is :a)An act of mutual exchange of promisesb...
An Executed Consideration is an act done in response to a positive promise. Let's break down the answer and understand it in detail.
Definition of Executed Consideration:
- Executed consideration refers to an act that has been performed or completed in response to a promise made by another party. It is an act that has already been carried out as opposed to a future act.
Understanding the options:
a) An act of mutual exchange of promises: This refers to a bilateral contract where both parties make promises to each other. However, in the case of executed consideration, it is not about exchanging promises but rather about performing an act in response to a promise.
b) An act done in the expectation of a proposal: This option does not align with the concept of executed consideration. Executed consideration is based on a positive promise, not on the expectation of a proposal.
c) An act done in response to a positive promise: This option correctly defines executed consideration. It means that one party has made a promise, and the other party has performed an act in response to that promise. The act has already been completed or executed.
d) All of the above: Since option (a) and (b) are not accurate, the correct answer is option (c) - an act done in response to a positive promise.
Conclusion:
Executed consideration is a legal term that refers to an act already performed in response to a positive promise. It is important to understand the concept of executed consideration in contract law as it forms the basis of many contractual agreements. By choosing option (c), we correctly identify the nature of executed consideration.
Definition of Executed Consideration:
- Executed consideration refers to an act that has been performed or completed in response to a promise made by another party. It is an act that has already been carried out as opposed to a future act.
Understanding the options:
a) An act of mutual exchange of promises: This refers to a bilateral contract where both parties make promises to each other. However, in the case of executed consideration, it is not about exchanging promises but rather about performing an act in response to a promise.
b) An act done in the expectation of a proposal: This option does not align with the concept of executed consideration. Executed consideration is based on a positive promise, not on the expectation of a proposal.
c) An act done in response to a positive promise: This option correctly defines executed consideration. It means that one party has made a promise, and the other party has performed an act in response to that promise. The act has already been completed or executed.
d) All of the above: Since option (a) and (b) are not accurate, the correct answer is option (c) - an act done in response to a positive promise.
Conclusion:
Executed consideration is a legal term that refers to an act already performed in response to a positive promise. It is important to understand the concept of executed consideration in contract law as it forms the basis of many contractual agreements. By choosing option (c), we correctly identify the nature of executed consideration.
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An Executed Consideration is :a)An act of mutual exchange of promisesb)An act done in the expectation of a proposalc)An act done in response to a positive promised)All of the aboveCorrect answer is option 'C'. Can you explain this answer?
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An Executed Consideration is :a)An act of mutual exchange of promisesb)An act done in the expectation of a proposalc)An act done in response to a positive promised)All of the aboveCorrect answer is option 'C'. Can you explain this answer? for CA Foundation 2025 is part of CA Foundation preparation. The Question and answers have been prepared according to the CA Foundation exam syllabus. Information about An Executed Consideration is :a)An act of mutual exchange of promisesb)An act done in the expectation of a proposalc)An act done in response to a positive promised)All of the aboveCorrect answer is option 'C'. Can you explain this answer? covers all topics & solutions for CA Foundation 2025 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for An Executed Consideration is :a)An act of mutual exchange of promisesb)An act done in the expectation of a proposalc)An act done in response to a positive promised)All of the aboveCorrect answer is option 'C'. Can you explain this answer?.
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