Executory consideration

How do you execute a contract? What does executory mean? See also executed consideration. An executory consideration takes place when an entity makes a promise to another entity and that entity does the same.

Take for example a person promises to lend money to a person to purchase a car at a later date as long as the receiving party promises to pay back the borrowed funds.

An example is a contract in which you promise to deliver items to another person at a later date and he promises to pay you when they are delivered. The opposite of executed. 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.

How to use executory in a sentence. A contract in which the promises of both the parties have yet to be performed. Thus, executory contract is that where under the terms of a contract something remains to be done by the parties.

In (2) and (3) the contract is formed by one party doing all he can be required to do under the contract. We can create a package that’s catered to your individual needs. Or book a demo to see this product in action. Consideration may be executory or executed but never past. In other words, it depicts the dictum “exchange of promises”.

For example, money which has been promised to be paid under a contract which has been paid is executed consideration. Executed v Executory consideration. Remaining to be done. Definition of executed consideration : Something given or accepted in return for a promise whose promised act has been performed. It was held that where a party to an existing contract later agrees to pay an.

This kind of consideration is common in contract for the sale of goods, where the whole transaction is in the future. In sales of goods, the executory consideration is termed ‘agreement to sell’. 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. It is essentially a promise given in.

Learn vocabulary, terms, and more with flashcards, games, and other study tools. Manifestation of Mutual Assent Manifestation of mutual assent to an exchange requires that each party either make a promise or begin or render a performance. 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. 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.

When the consideration on both sides is to move at a future date, it is called ‘future consideration’ or ‘ executory consideration ’. It consists of an exchange of promises and each promise is a consideration for the” other. This form of consideration typically arises with unilateral contracts. If consideration means the set of principles defining the conditions that make promises enforceable, the elements of consideration will be continually adjusted as it becomes so-cially desirable to add new or drop old conditions. This, however, is not a principle of law, but a rule of pleading, and amounts to nothing more than an affirmation that in assumpsit upon a contract, founded. This means that the promise or obligation will be performed in future.

A definition exists in Ballentine’s Law Dictionary as past consideration is a consideration given before the making of a promise and without reference to it. In the absence of a statutory provision dealing with the sufficiency of past consideration in the context of validity of a contract, common law will control. If A does not deliver them, this is a breach of contract and B can sue. Is an option contract legally binding with executory consideration ? For example if X makes a promise to supply Y with some service or good and Y assures X that he will pay him when the job is completed.

It attempts to answer the question of whether, in a wholly executory contract, should such a contract be binding, the only kind of damages that would be awarded would be damages for loss of expectations since, by hypothesis, there would be no reliance and no benefit which could form the basis of damages. A consideration may be executed or executory , in whole or in part. When a consideration is executory , it is not indispensable that the contract should specify its amount or the means of ascertaining it.