Executed consideration

Definition of executed consideration : Something given or accepted in return for a promise whose promised act has been performed. See also executory consideration. Am J2d Contr § 125.

A consideration which is wholly performed. Therefore, in reward cases, for example, a promise to pay a reward when an act is done becomes enforceable only when that act is performed.

Executed consideration is a performe or executed , act in return for a promise. EXECUTED CONSIDERATION When a promise is made in exchange for an act, when that act is performe it is executed consideration. When this performance occurs the consideration is considered executed.

It is something given or accepted in return for a promise, where the promised act remains to be performed on a future date. There are two types of consideration : executed and executory. Where consideration has been given ( executed ), consideration has already been carried out.

However, it cannot be something that happened in the past.

In general, an executed contract is a done deal. It was held that normally in such a case, the bank would promise not to. By not suing, however, the bank.

As well as being either executed or executory, there are additional rules that must be met for consideration to be valid : Performance must be legal, the courts will not enforce payment for illegal acts Performance must be possible, agreeing to perform the impossible is not a basis for a biding. For example, money which has been promised to be paid under a contract which has been paid is executed consideration. Where the benefit, in contemplation of which the promise is made, is done at the same time that the promise acquires a binding force, - where it is the doing of the act that concludes the contract, - then the act so done is called an executed or present consideration for the promise. Executory consideration is consideration has been promised but not yet performed or delivered to the other party.

Now, with regard to the meaning of these words, which you will continually hear used in legal arguments, it is this:-an executed consideration is one which has already taken place, an executory consideration one which is to take place-one is past, the other future. Consideration is executed when the plaintiff is able to show that he has performed his own part of the contract. A classical example is an offer of reward for finding a lost article or an offer of reward for volunteering some information of some sort.

In the case of executory consideration , one party is bound by the contract by promising to do something or not to do something. Sometimes, there is a dispute as to whether or not a contract is legally binding because of an alleged lack of consideration. Executed Consideration - if one party to a contract makes a promise for an act by another party, it is an executed consideration when the act is done. If you offer a reward for a lost wallet and another person finds it and gives it to you, that person’s consideration is executed.

This form of consideration typically arises with unilateral contracts.

This excludes promises of love and affection, gaming and betting etc. A one sided promise which is not supported by consideration is a gift. The law does not enforce gifts unless they are made by deed. An executed consideration arises where one of two parties has, either in the act which amounts to a proposal, or the act which amounts to an acceptance, done all that he is bound to do under the contract, leav ing an outstanding liability on the other party only. If,for example, A offers a reward for the return of lost property, his promise becomes binding when B performs the act of returning A’s property to him.

A is not bound to pay anything to anyone until the prescribed act is done. Executed or present consideration is one which takes place simultaneously with the promise. The act constituting the consideration is wholly or completely performed.

Consideration which moves simulta­neously with the promise, is called ‘present consideration’ or ‘ executed consideration ’. English dictionary definition of executed. An executed contract is a contract that is fully legal immediately after all parties involved have signe and the terms must be fulfilled immediately. With an executory contract, the terms are set to be fulfilled at a future date.

Both contracts however, are considered executed agreements once the parties sign. A deed is a written document which is executed with the necessary formality (that is, more than a simple signature), and by which an interest, right or property passes or is confirme or an obligation binding on some person is created or confirmed. Deeds are generally enforceable despite any lack of consideration.