Final answer:
Past consideration refers to value provided before a promise is made and is usually not enforceable as it is not considered good consideration in common law. It is recognized as having value but does not fulfill the requirements for forming an enforceable contract.
Step-by-step explanation:
The correct statement about past consideration is that it refers to a situation where one party provides value before the promise is made. In most common law jurisdictions, past consideration is not considered good consideration and is generally not enforceable by law. This means that if Party A does something for Party B, and Party B later promises to pay Party A for that act, the promise is not enforceable as a contract because the consideration (Party A’s original act) occurred before the promise was made, and therefore is past consideration.
It is important to clarify that consideration must come from both sides for a contract to be valid; however, past consideration does not suffice for this requirement. Moreover, past consideration is acknowledged as having been of some value, but it is not treated the same as present or future consideration in the eyes of the law, which is why it is said to be not a real consideration for forming a contract.