A promise to repay someone for a benefit after it has been received is known as:
A) pre-ordained contract.
B) pre-meditated contract.
C) prior consideration.
D) past consideration.

Question

Quizplus · Accepted Answer

The promise to repay someone for a benefit after it has been received is known as past consideration, which is the legal term for a benefit given or an act done in the past in exchange for a promise or obligation made in the present or future. Option A, pre-ordained contract, is not a valid term. Option B, pre-meditated contract, is not a legal term related to consideration. Option C, prior consideration, is a term that refers to a benefit given or an act done in exchange for a promise or obligation made at the same time or before the benefit or act took place, which is not applicable in this scenario.

A Promise to Repay Someone for a Benefit After It