Define: Executory Consideration

Executory Consideration
Executory Consideration
Quick Summary of Executory Consideration

Executory consideration is a concept in contract law that refers to a promise to perform an act or provide something of value in the future in exchange for another party’s promise to do the same. It involves a contractual obligation that has not yet been fully performed by either party at the time the contract is made. In other words, both parties have duties or obligations that they have yet to fulfill under the terms of the contract. Executory consideration distinguishes contracts from unilateral promises, where one party’s performance is already complete at the time the promise is made. The concept of executory consideration underscores the mutual obligations and promises exchanged between parties in a contract, forming the basis of contractual rights and obligations until both parties have fulfilled their respective duties.

Full Definition Of Executory Consideration

Consideration (see: Consideration) in a contract which has not been completed, but which needs to be. For example, if A offers B £10,000 to build A a house, B’s consideration is executory until he has finished the work (see: Executed consideration).

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This glossary post was last updated: 28th March, 2024.

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