Executory Consideration

Executory consideration refers to a promise or commitment made in a contract where the parties agree to fulfill their obligations at a future date. In this context, one party agrees to provide a benefit, like payment or service, in exchange for a benefit from the other party, which will also occur later. This type of consideration emphasizes that both sides are still in the process of completing their agreed actions, rather than having fulfilled them immediately. It helps ensure that each party is legally bound to perform their part of the agreement down the line.