Legal Definitions - invented consideration

Definition: Invented consideration is a fictional consideration created by a court to prevent the invalidation of a contract that lacks consideration. Consideration refers to something of value that is exchanged between parties in a contract.

Example: A promises to give B a car, but B does not promise anything in return. This contract lacks consideration because B is not giving anything of value in exchange for the car. However, if the court were to find that B had previously performed a service for A, and A promised the car as a reward for that service, the court may invent consideration to uphold the contract.

Explanation: In this example, the court may find that B's previous service to A constitutes consideration, even though it was not originally part of the contract. By inventing consideration, the court can uphold the contract and prevent A from reneging on their promise to give B a car.