In common law, past consideration is generally:

In common law, past consideration is generally:

• A. valid
• B. invalid
• C. valid only if written
• D. valid if accompanied by a new consideration

Answer: (B)

Past consideration is generally invalid because a contract’s consideration must be a bargained-for exchange that moves from the promisee in return for the promise. If the act or payment occurs entirely before the promise is made, there’s no inducement or exchange at the time of the promise. In other words, paying for something after it’s already been done doesn’t provide the necessary consideration to support a new contract. That’s why, in common law, past consideration typically cannot support an enforceable promise. The form or a separate new promise won’t cure the lack of consideration created by the act having already occurred; the essential element is the exchange happening at the time the promise is made.

Past consideration is generally invalid because a contract’s consideration must be a bargained-for exchange that moves from the promisee in return for the promise. If the act or payment occurs entirely before the promise is made, there’s no inducement or exchange at the time of the promise. In other words, paying for something after it’s already been done doesn’t provide the necessary consideration to support a new contract. That’s why, in common law, past consideration typically cannot support an enforceable promise. The form or a separate new promise won’t cure the lack of consideration created by the act having already occurred; the essential element is the exchange happening at the time the promise is made.