Contingent Consideration Law and Legal Definition
Contingent consideration refers to a payment that is contingent on the occurrence of a particular factor or factors. This concept is used in earn out agreements where a purchaser pays a lump sum at the time of acquisition, with a promise to pay more (contingent consideration) if certain criteria are met within a specified period of time.
Legal Definition list
Related Legal Terms
- Actus Inceptus Cujus Perfectio Pendet Ex Voluntate Partium Revocari Potest, Si Autem Pendet Ex Voluntate Tertiae Personae, Vel Ex Contingenti, Revocar
- Additional-Consideration Rule
- Adequate and Full Consideration in Money or Money’s Worth
- Adequate Consideration
- Bargain Theory of Consideration
- Concurrent Consideration
- Consideration
- Contingent
- Contingent Annuity
- Contingent Beneficiary
