The CA Hub

ICAEW BL · Chapter 2 · Question 6 of 10

Brightwater Ltd asks Leona, a self-employed systems consultant, to review its payroll controls. Nothing is said about her fee, but both parties are businesses and understand the work would be paid for. When Leona finishes, Brightwater's managing director promises her £2,000. Can Leona enforce the promise?

Test yourself: pick an answer

Reveal answer & explanation

Correct answer: B) Yes, because the work was requested, both parties understood it would be paid for, and payment would have been enforceable had it been promised in advance

Explanation

This falls within the exception to the past consideration rule recognised in Lampleigh v Brathwait and Pao On v Lau Yiu Long. If the act was done at the promisor's request, both parties understood payment would follow, and the promise would have been enforceable had it been made beforehand, the later promise is enforceable. The agreed £2,000 fixes the amount. No writing is required for this contract.

All 10 questions in Chapter 2Formation of contract MCQs with answers

More Formation of contract MCQs

Sponsored slot availableRun a CA academy or hiring firm? Put your name in front of students preparing for this exam.Advertise →