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. It is something given or accepted in return for a promise, where the promised act remains to be performed on a future date.

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. 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.

EXECUTED CONSIDERATION When a promise is made in exchange for an act, when that act is performe it is executed consideration. When a contract has been completely performe it is termed as executed contract, i. It was held that normally in such a case, the bank would promise not to. A contract may be executed at once i. By not suing, however, the bank. A consideration which is wholly performed.

The two forms of consideration thus suggested have been described as (1) acceptance of an executed consideration , and (2) consideration executed upon request. They arise when the proposal is an.

Something of value given by both parties to a contract that induces them to enter into the agreement to exchange mutual performances. It may consist of a promise to perform a desired act or a promise to refrain from doing an act that one is legally entitled to do. 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. So for example, in a contract. 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.

Executory consideration consists of a promise to do something. 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.

For example, money which has been promised to be paid under a contract which has been paid is executed consideration. Executed consideration , which is consideration which has been provided by the party promising it. Forbearance to act amounts to consideration only if one is thereby surrendering a legal right.

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. When this performance occurs the consideration is considered executed.

This form of consideration typically arises with unilateral contracts. English dictionary definition of executed. A valid contract must include consideration for every party involved.

In simple terms, consideration is the basic reason a party enters into a legal contract. Past consideration typically comes into play when someone is trying to enforce a new promise. When a new contract is written, past consideration will not count as consideration for the purposes of the contract. When it consist in a promise, it is said to be executory.

The promise by one party may be the consideration for an act by some other party, and vice versa. The consideration which is ‘past’ would have operated as valid consideration if the act was done at the promisor’s. There was an understandingthere would be the conferment of some kind of rewar payment or benefit for the act. Executed or present consideration is one which takes place simultaneously with the promise.

The act constituting the consideration is wholly or completely performed. If the promise and consideration take place simultaneously then it is present or executed consideration. An example is Peter goes to a shop, buys a bag of chips and pays for the same on-spot. In your case, the property is sold against consideration by executing a gpa plus sale dee which is essentially a sale of immoveable property. But there are chances that few grantors may later on decide to challenge the gpa on the ground that it's not a sale since there is no registered sale deed.

Consideration is something of value that is promised in order to enter into a contract. In these contracts, the consideration is the action or forbearance, which when completed or brought to notice, then the contract is said to be completed.