Legal Definitions - executed consideration

In contract law, consideration is an essential element for a contract to be legally binding. It refers to something of value—a benefit to one party or a detriment to the other—that is exchanged between the parties. It's what each party gives up to get what the other party promises.

Executed consideration is a specific type of consideration where one party has already performed their part of the bargain (an act) *before* the other party makes a promise in return. The act is complete, and then the promise is made. For this to be valid consideration, the act must have been performed at the request of the promisor, with an understanding that it would be rewarded or compensated.

Here are some examples illustrating executed consideration:

• Example 1: Emergency Repair
  A homeowner's roof is severely damaged during a sudden storm. Their neighbor, a skilled carpenter, sees the damage and immediately climbs onto the roof to perform temporary repairs, preventing further water intrusion into the house. After the carpenter has completed the emergency work, the grateful homeowner promises to pay them $500 for their swift and crucial assistance.
  Explanation: The carpenter's act of performing the temporary roof repairs is the executed consideration. This act was completed *before* the homeowner made the promise to pay $500. The homeowner's promise is made in response to the already-performed service.

• Example 2: Finding a Lost Item
  A local artist posts flyers around town offering a reward for the safe return of her unique, custom-made easel, which was accidentally left at a park. A jogger sees a flyer, recognizes the easel from their run earlier, retrieves it, and returns it to the artist. Overjoyed, the artist then promises the jogger the advertised $100 reward.
  Explanation: The jogger's act of finding and returning the easel is the executed consideration. This act was performed and completed *before* the artist made the promise to give the $100 reward. The artist's promise is a direct response to the jogger's completed action.

• Example 3: Business Consultation
  A small business owner is struggling with a complex marketing problem and asks a friend, who is a marketing expert, for some advice. The friend spends an afternoon analyzing the business's situation and provides a detailed strategy. Impressed by the thorough and helpful advice, the business owner then promises to give the friend a significant discount on products from their store.
  Explanation: The marketing expert's act of providing a detailed strategy and consultation is the executed consideration. This service was fully rendered *before* the business owner made the promise of a discount. The promise is made in appreciation of the already-completed expert advice.