Executed Consideration:

Executed consideration is a legal term that refers to an act performed in response to a positive promise. It is an essential element in the formation of a contract. Here, we will discuss the meaning and significance of executed consideration in detail.

Meaning of Executed Consideration:

Executed consideration means the act that has already been performed by one party to a contract in exchange for a promise made by the other party. It is an act that has already been completed, and the parties have no further obligation towards each other. For instance, if A promises to pay B $500 if B paints A's house, and B completes the painting work, then B's act of painting the house is executed consideration. It is because B has already done the work and is entitled to the payment.

Significance of Executed Consideration:

Executed consideration is significant in contract law because it is proof that the parties have entered into a contract. It shows that both parties have fulfilled their obligations under the contract, and the contract is valid. Moreover, the performance of executed consideration is an indication that the party performing the act had the intention to be bound by the contract. Therefore, executed consideration is an essential element in determining the validity of a contract.

Difference between Executed Consideration and Executory Consideration:

Executed consideration is different from executory consideration. Executory consideration refers to the act that has not yet been performed but is promised to be done in the future. For example, if A promises to pay B $500 to paint A's house, and B has not yet painted the house, then B's promise to paint the house is executory consideration.

Conclusion:

In conclusion, executed consideration is an act that has already been performed by one party to a contract. It is an essential element in determining the validity of a contract, as it shows that both parties have fulfilled their obligations under the contract. Moreover, executed consideration distinguishes from executory consideration, which refers to the act that has not yet been performed but is promised to be done in the future.