The expression “pay it forward” is used to describe the concept of asking the beneficiary of a good deed to repay it to others instead of to the original benefactor. The concept is old, but the phrase may have been coined by Lily Hardy Hammond in her 1916 book In the Garden of Delight.
“Pay it forward” is implemented in contract law of loans in the concept of third party beneficiaries. Specifically, the creditor offers the debtor the option of “paying” the debt forward by lending it to athird person instead of paying it back to the original creditor. Debt and payments can be monetary or by good deeds. A related type of transaction, which starts with a gift instead of a loan, isalternative giving.