What is executed consideration?

Executed consideration refers to the situation where something of value has been transferred or performed in accordance with a contractual obligation. In a contract, this means one party has fulfilled their part of the agreement, which is a crucial requirement for the contract to be deemed enforceable.

For instance, if a person sells a piece of furniture and receives payment at the time of sale, both the delivery of the furniture and the payment have occurred. This mutual exchange of benefits exemplifies executed consideration, as both parties have completed their respective performances.

The other options pertain to different types of consideration. Consideration that is yet to be performed is known as executory consideration, which is relevant during the time between forming a contract and full performance. Optional consideration does not accurately reflect the obligatory nature of contractual commitments, while consideration with a deadline aligns more with the timing aspects of a contract rather than the completion aspect. Thus, the definition aligns perfectly with the notion of executed consideration being completed.