Legal Definitions - concurrent consideration

Concurrent consideration refers to the exchange of value or promises that occurs at the same time as the formation of a contract. For an agreement to be legally enforceable, both parties must provide something of value (known as "consideration") to each other. When this exchange of value happens simultaneously with the agreement itself, it is known as concurrent consideration. It signifies that the promises or actions forming the consideration are given in direct response to and at the same time as the other party's promise or action, making the agreement a present bargain.

Here are some examples illustrating concurrent consideration:

• Retail Purchase: When a customer buys a book at a bookstore, the customer hands over money (their consideration) and the cashier immediately provides the book (the store's consideration). This simultaneous exchange of payment for goods demonstrates concurrent consideration, as the value is exchanged at the very moment the agreement to buy and sell is finalized.

• Freelance Service: Imagine a small business owner hires a freelance graphic designer for an urgent project. They agree on a price, and the designer immediately begins work, while the business owner simultaneously makes an upfront payment or promises immediate payment upon completion. The designer's act of starting the work and the business owner's payment or promise of payment are happening concurrently, forming the basis of their contractual agreement.

• Gym Membership: A person signs up for a new gym membership. At the moment they sign the membership agreement (promising to pay monthly fees and abide by gym rules), they also make their first payment. In return, the gym immediately grants them access to its facilities and services. The act of signing the agreement, making the payment, and gaining access to the gym all occur at the same time, illustrating concurrent consideration.