Legal Definitions - antecedent claim

An antecedent claim refers to a legal right or demand that already existed *before* a current transaction, agreement, or event took place. It is a pre-existing obligation or entitlement that serves as the basis or consideration for a new action or settlement.

• Example 1: Settling a Business Debt

  Imagine "Tech Solutions Inc." owes "Office Supplies Co." $10,000 for office equipment delivered three months ago. This $10,000 debt is an antecedent claim. Tech Solutions Inc. doesn't have the cash immediately, so they offer Office Supplies Co. a new, interest-bearing promissory note (a written promise to pay a specific sum of money at a future date) for $10,000, which Office Supplies Co. accepts. Office Supplies Co. has taken the promissory note in satisfaction of the antecedent claim that Tech Solutions Inc. already owed them. The new note was given to settle a pre-existing financial obligation.

• Example 2: Resolving a Service Dispute

  A homeowner, Ms. Chen, hired a landscaping company, "Green Thumb Gardens," to redesign her backyard. After the work was completed, Ms. Chen was dissatisfied with a particular plant selection and withheld a portion of the final payment. Green Thumb Gardens has an antecedent claim for the remaining payment for the work they performed. To resolve the dispute, Green Thumb Gardens agrees to replace the plants at no extra cost, and in return, Ms. Chen agrees to pay the withheld amount. Green Thumb Gardens' agreement to replace the plants is made in exchange for Ms. Chen satisfying their antecedent claim for the payment due for the original landscaping project.

• Example 3: Legal Settlement from an Accident

  Mr. Davies was involved in a car accident caused by another driver, Ms. Rodriguez. Mr. Davies incurred medical bills and vehicle repair costs, giving him an antecedent claim for damages against Ms. Rodriguez. Instead of going to court, Ms. Rodriguez's insurance company offers Mr. Davies a settlement check for a specific amount to cover his expenses and pain and suffering, which he accepts. Mr. Davies accepted the settlement check to resolve his antecedent claim for damages stemming from the car accident. The claim existed prior to and was the basis for the settlement agreement.