Nude Contract Law and Legal Definition
A nude contract is an agreement that is unenforceable because it is made without consideration. It is called a nude contract because the agreement is not clothed with the consideration required by law in order to give an action.
Nude contracts are governed by the legal maxim 'ex nudo pacto non oritur action,' meaning a right of action does not arise from a naked contract. A naked contract may be avoided and is not binding.
However, there are some contracts that import consideration in consequence of their forms, as sealed instruments, and bills of exchange, and promissory notes, which are generally good although no consideration appears.
A nude contract is also known as a naked contract, nudum pactum, or a nude pact.
