Past consideration is sufficient consideration to support a new contract.

Question

Quizplus · Accepted Answer

Past consideration, which refers to an act or performance which has already been completed before a new contract is entered into, is not considered valid consideration as it lacks the necessary element of bargain and exchange that is required for a contract to be enforceable. Therefore, it cannot support a new contract. Only present or future consideration can support a new contract.

Past Consideration Is Sufficient Consideration to Support a New Contract