In legal agreements, future consideration pertains to something that will be provided or performed in the future. Consideration serves as a motivator for individuals to engage in legal acts or make promises, and can take the form of an act, forbearance, or return promise. It is distinct from past consideration, which refers to something that has already been given or done. To ensure enforceability of a legal agreement, consideration or a substitute like promissory estoppel must be present.
Future consideration refers to the act of giving or receiving something in the future as part of a contract or agreement. It involves making a promise to perform an action or provide something at a later time. For instance, a company may pledge to give an employee a bonus at the end of the year if they achieve specific performance targets. This bonus serves as an illustration of future consideration since it will be granted after the employee fulfils the goals. It is worth noting that future consideration is a customary element in numerous contracts and agreements. However, it is crucial to emphasize that the promise of future consideration must be legally binding and enforceable. In the aforementioned example, the promise of a bonus is only valid if the employee meets the performance goals specified in the contract. If the employee fails to meet these goals, the company is not obligated to provide the bonus.
Future consideration refers to a promise made by one party to provide something of value to the other party in the future in exchange for a current promise or action.
Yes, future consideration is legally binding as long as it meets the requirements of a valid contract, including mutual agreement, consideration, and capacity.
Future consideration cannot be revoked once it has been promised, unless both parties agree to cancel the contract or if there is a breach of contract.
Examples of future consideration include a promise to pay for services rendered at a later date, a promise to provide goods or services in exchange for a down payment, or a promise to perform a certain action in the future.
Future consideration refers to a promise made for something that will be provided in the future, while past consideration refers to something that has already been provided in exchange for a promise.
Yes, future consideration can be conditional, meaning that it is dependent on certain events or actions taking place in the future.
If one party fails to provide future consideration as promised, it may be considered a breach of contract and the other party may be entitled to damages or other legal remedies.
Future consideration can be assigned to another party if both parties agree to the assignment and it is not prohibited by the terms of the contract.
The value of future consideration is typically determined by the parties involved and may be based on market rates, industry standards, or other factors.
A contract involving future consideration should include clear terms outlining the promises made by each party, the timeline for providing future consideration, any conditions or contingencies, and any legal remedies in the event of a breach of contract.
This site contains general legal information but does not constitute professional legal advice for your particular situation. Persuing this glossary does not create an attorney-client or legal adviser relationship. If you have specific questions, please consult a qualified attorney licensed in your jurisdiction.
This glossary post was last updated: 17th April 2024.
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