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Ocean Pangan
on Nov 23, 2024

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Charlie looks after Brad's motorcycle shop for a weekend, and, on Brad's return, Brad promised to give Charlie $200 for his kind act. In this case, Charlie's act of looking after Brad's shop was gratuitous and past consideration for Brad's later promise of payment. If Brad fails to pay the $200, no contract exists for Charlie to enforce because no consideration can be shown except the past gratuitous act.

Gratuitous Act

An action or deed done voluntarily without expecting any return or compensation.

Past Consideration

In contract law, refers to an act or event that has already taken place before the promise is made, and thus is not valid consideration for a contract.

  • Scrutinize the legal components of uncompensated actions and their binding force without an exchange of value.
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TB
Tatiana BelenNov 23, 2024
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