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Simple English definitions for legal terms
future consideration
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A quick definition of future consideration:
Future consideration refers to something that will be given or done in the future as part of a legal agreement. Consideration is something that motivates a person to do something, like making a promise or engaging in a legal act. It can be an act, a forbearance, or a return promise. Future consideration is different from past consideration, which is something that has already been given or done. For a legal agreement to be enforceable, there must be consideration, or a substitute such as promissory estoppel.A more thorough explanation:
Definition: Future consideration is something that will be given or received in the future as part of a contract or agreement. It is a promise to do something or to provide something at a later time.
Example: A company promises to pay an employee a bonus at the end of the year if they meet certain performance goals. The bonus is an example of future consideration because it will be given at a later time, after the employee has met the goals.
Explanation: Future consideration is a common part of many contracts and agreements. It is important to note that the promise of future consideration must be legally binding and enforceable. In the example given, the promise of a bonus is only valid if the employee meets the performance goals outlined in the contract. If they do not meet the goals, the company is not obligated to provide the bonus.