Past Consideration Maxim

The Past Consideration Maxim asserts that past acts or benefits, provided prior to a promise, cannot serve as valid consideration for a subsequent agreement. Consideration must be contemporaneous with or future to the promise to create a binding contract.

The principle has its roots in common law and has been recognized since the development of contractual relations, emphasizing the need for mutual exchange and present intent. Historically, it ensures that contracts are enforceable based on current or future obligations rather than past actions.

In modern law, the Past Consideration Maxim is often invoked in contract disputes where one party attempts to claim compensation for a service rendered before any promise was made. Courts typically reject such claims, establishing that valid consideration must be provided simultaneously or subsequent to the agreement.

• A promises to pay B $100 for a service that B already performed a week ago without any prior agreement about payment.
• C decides to give D a reward for rescuing C's cat last year, but D had not requested a reward at that time.

• Roscorla v. Thomas (1842) 3 QB 234