Past consideration refers to something that has already been done before a contract is formed. This means that any act or service provided prior to the agreement cannot be used as a basis for consideration in that contract. In legal terms, consideration is the value exchanged between parties in a contract, and past consideration does not qualify because it is not induced by the promise of the other party.
Past consideration is primarily relevant in contract law. It is important in determining whether an agreement is enforceable. Since contracts require consideration to be valid, understanding past consideration helps clarify why certain promises may not be legally binding. Users can manage simple contract-related issues using legal templates from US Legal Forms, which are drafted by qualified attorneys.
Here are a couple of examples of abatement:
Example 1: A person helps a friend move into a new apartment without any agreement of payment. Later, the friend promises to pay them for the help. This promise is not enforceable because the help was provided before the promise was made.
Example 2: A contractor finishes a job and then requests additional payment for work already completed. If there was no prior agreement for this payment, it may not be enforceable due to past consideration. (hypothetical example)
| Term | Definition | Difference |
|---|---|---|
| Consideration | The value exchanged in a contract. | Past consideration refers specifically to acts done before the contract. |
| Future Consideration | A promise to perform an act in the future. | Past consideration is about actions already taken, while future consideration is about commitments to be fulfilled later. |
If you find yourself in a situation involving past consideration, consider the following steps:
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Past consideration is an act or service that has already been completed before a contract is made and cannot be used as a basis for consideration.