§ 1610 Executory Consideration Standards

This law says that if a contract's payment is not yet decided, it doesn't have to name the exact amount or how to figure it out; it can be set by a third party or by a simple rule.

Key Takeaways

•The exact payment amount doesn’t have to be spelled out in the contract.
•A third person can decide the amount, or a simple standard can be used.
•The contract stays valid as long as there’s a clear way to determine the payment.

Example

A homeowner hires a gardener and says the gardener will be paid whatever the neighbor decides is fair after the work is done.

The neighbor can choose the payment amount, or use a simple rule like "pay $10 per hour," and the contract still works even though the exact dollar amount isn’t written in the agreement.

When a consideration is executory, it is not indispensable that the contract should specify its amount or the means of ascertaining it. It may be left to the decision of a third person, or regulated by any specified standard. (Enacted 1872.)

This law says that if a contract's payment is not yet decided, it doesn't have to name the exact amount or how to figure it out; it can be set by a third party or by a simple rule.

Key Takeaways

•The exact payment amount doesn’t have to be spelled out in the contract.
•A third person can decide the amount, or a simple standard can be used.
•The contract stays valid as long as there’s a clear way to determine the payment.

Example

A homeowner hires a gardener and says the gardener will be paid whatever the neighbor decides is fair after the work is done.

The neighbor can choose the payment amount, or use a simple rule like "pay $10 per hour," and the contract still works even though the exact dollar amount isn’t written in the agreement.

Key Takeaways

Example

Key Terms

References

§ 1610 Executory Consideration Standards

Key Takeaways

Example

Key Terms

References

Key Takeaways

Example

Key Terms

Related Statutes

References

Key Takeaways

Example

Key Terms

Related Statutes

References