Consideration means something in return that is an essential element to find out the genuine intention of the parties of the promise to create legal relationship. Consideration is an essential component of a valid contract. Consideration is the price for the contract.
The three types of consideration include;
1. Executory or Future Consideration: Executory Consideration, as the name suggests is one which is yet to be performed. This means that the promise or obligation will be performed in future.
2. Executed or Present Consideration: Executed consideration, means the one which is concurrently provided when the promise is made. Meaning that the act which amounts to consideration is fully performed.
3. Past Consideration: Past consideration refers to the formerly performed act or forbearance which amounts to consideration has already been provided before the promise is given. Further, if consideration for a present promise is provided earlier to the date of promise, it is regarded as past consideration.