Past Consideration

In one sentence

A promise made in exchange for something already done, which generally does not create a binding contract.

Plain English

Past consideration happens when you promise to pay someone for something they already did for you—before you made the promise. The problem is that they didn't do it expecting payment (since you hadn't promised anything yet), so there's no real bargain. Courts usually won't enforce these promises because consideration must be bargained for at the time the contract forms, not after the fact. The only exception is if a prior moral obligation is strong enough and the promise is explicit.

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Example

Your neighbor spends a Saturday fixing your roof without asking for payment. A week later, you promise to pay him $500. He likely cannot enforce that promise because the roof repair happened before you made any commitment.

Used in a sentence

“The court dismissed the claim because the alleged consideration was past consideration—the work had been completed long before the promise was made.”

Related terms

Bargained-for Exchange

A mutual agreement where each party gives something of value in return for something from the other.

Voidable Contract

A contract that one party can cancel or reject, but is otherwise valid.

Mutual Mistake

Both parties are wrong about a basic fact when they sign a contract.

Conditions Precedent

An event that must happen before a party's obligation under a contract kicks in.

Offer

A proposal to enter into a binding agreement on specific terms.

Acceptance

Agreeing to the exact terms of an offer, creating a binding contract.

Consideration

Something of value exchanged by each party to make a contract binding.

Offeror

The person who makes an offer to enter into a contract.

This page is a plain-English reference and is not legal advice. Laws vary by jurisdiction and change over time. For specific situations consult a licensed attorney.