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

Question

Quizplus · Accepted Answer

A promise to repay someone for a benefit that has already been received is known as past consideration. This is because the promise is made after the benefit has been received, and therefore lacks the necessary consideration to be considered a valid contract. Pre-ordained and pre-meditated contracts do not apply in this scenario, and prior consideration refers to a benefit received in exchange for a promise, not a promise made after the fact.

A Promise to Repay Someone for a Benefit After the Benefit