Legal Definitions - nude pact

A nude pact, also known by its Latin term nudum pactum, refers to an agreement or promise that lacks "consideration." In contract law, "consideration" is an essential element for a contract to be legally binding. It means that something of value must be exchanged between the parties involved – a benefit to one party or a detriment to the other, which is bargained for and given in exchange for the promise. Without this mutual exchange of value, the agreement is considered a "naked" or "bare" promise, and it is generally not enforceable in a court of law.

• Example 1: A Promise of a Future Gift

  Sarah promises her friend, Mark, that she will give him her antique watch next month because he's been a good friend. Mark is excited about the watch. However, Sarah later changes her mind and decides to keep it. Mark cannot legally force Sarah to give him the watch.

  Explanation: This is a nude pact because Sarah's promise to give Mark the watch is a gratuitous promise; Mark did not offer anything of value in return for the watch, nor did he suffer any legal detriment at Sarah's request. There was no consideration exchanged, making the agreement unenforceable.

• Example 2: Promise for a Pre-Existing Duty

  A construction company, "BuildRight Inc.," has a contract to build a new office building for "Tech Innovations Corp." for $5 million. Halfway through the project, BuildRight Inc. tells Tech Innovations Corp. that they are facing unexpected material costs and will only complete the building if Tech Innovations Corp. promises an additional $500,000. Tech Innovations Corp., desperate to have the building finished on time, agrees to the extra payment.

  Explanation: The promise of an additional $500,000 from Tech Innovations Corp. is a nude pact. BuildRight Inc. was already legally obligated under the original contract to complete the building for $5 million. Their promise to complete the building (which they were already bound to do) does not constitute new consideration for the additional payment. Therefore, Tech Innovations Corp.'s promise to pay the extra $500,000 would likely be unenforceable.

• Example 3: Past Consideration

  One evening, while walking home, David sees his neighbor, Emily, struggling to change a flat tire. David, being a good Samaritan, stops and helps Emily change the tire. The next day, feeling grateful, Emily tells David, "Thank you so much for your help yesterday! I promise to pay you $50 next week for your kindness." Emily later forgets or decides not to pay David.

  Explanation: Emily's promise to pay David $50 is a nude pact. David's act of helping Emily was performed before Emily made her promise to pay him. This "past consideration" is not considered valid consideration in contract law because it was not bargained for or given in exchange for Emily's promise at the time the promise was made. Therefore, David cannot legally compel Emily to pay him the $50.