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Simple English definitions for legal terms
naked contract
Read a random definition: identikit
A quick definition of naked contract:
A naked contract, also known as a nudum pactum, is an informal agreement that cannot be legally enforced because it does not meet the requirements of a legally binding contract. This means that it lacks consideration, which is something of value that each party gives or promises to give to the other. However, a naked contract may still modify or create an exception to an existing obligation.
A more thorough explanation:
A naked contract, also known as a nudum pactum, is an informal agreement that is not legally enforceable because it lacks consideration. Consideration is something of value that is exchanged between parties in a contract. Without consideration, a contract is considered unenforceable.
For example, if John promises to give Jane $100 for no reason, this would be considered a naked contract because there is no consideration exchanged between them. If John fails to give Jane the $100, she cannot take legal action against him because the contract is not legally enforceable.
In Roman law, a nudum pactum was also an agreement that did not fall within the specific classes of agreements that could support a legal action. However, it could create an exception to or modification of an existing obligation.