1.A
Past consideration is sufficient to create liability on a bill of exchange – this is one of the few exceptions to the rule on past consideration. Suffering loss or detriment is valid consideration. Impossible or illegal acts are not valid consideration.
2. A
For the extra consideration to be valid, the creditor must become entitled to something that they are not already entitled to. In this case, goods rather than cash and payment by a third party are valid examples.
A guarantee of payment and payment on time are not valid as extra consideration because the creditor is already entitled to them.
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