Is past consideration valid under common law?

Is past consideration valid under common law?

• A. A Not consideration
• B. B Consideration, but must show good faith
• C. C Consideration, if expressly stated in a signed writing AND can be proved
• D. D None of the above

Answer: (A)

The key idea is that consideration must be a bargained-for exchange at the time the promise is made. When the act has already occurred before any promise to pay, there’s no inducement for the promisor and no mutual exchange formed; the promise to pay for a past act lacks consideration. Therefore, under common law, past consideration is not valid. Extensions like good faith or a signed writing don’t fix this, because they don’t create the necessary bargain where none existed. A promise to pay for something already done isn’t enforceable solely due to a writing or due to good faith.

The key idea is that consideration must be a bargained-for exchange at the time the promise is made. When the act has already occurred before any promise to pay, there’s no inducement for the promisor and no mutual exchange formed; the promise to pay for a past act lacks consideration. Therefore, under common law, past consideration is not valid.

Extensions like good faith or a signed writing don’t fix this, because they don’t create the necessary bargain where none existed. A promise to pay for something already done isn’t enforceable solely due to a writing or due to good faith.