Ch 13 BLAW: Consideration

Question 1

Heart of contracts

Answer 1

Consideration- “No cause of action arises from a bare promise”

Question 2

Element of consideration: Value

Answer 2

money, property, or things of obvious value
LEGAL VALUE

Question 3

Element of Consideration: promises

Answer 3

People can depend on the promise being fulfilled
LEGAL VALUE

Question 4

element of consideration: performance

Answer 4

people can’t do things for free
LEGAL VALUE

Question 5

Element of consideration: forbearance

Answer 5

Hamer V sidway: He forbore drinking, smoking, and other stuff for 10,000. When you forbore something that means there is consideration
LEGAL VALUE

Question 6

adequacy of consideration

Answer 6

both sides have to provide something of value for there to be consideration
- cost has nothing to do with products value
- courts don’t consider the adequacy of consideration (the accuracy of items value) because its hard to tell what an individual values something at (judges don’t determine value)
-value of items exchanged don’t have to be equal (inequality is profit)

Question 7

Bargained for exchange

Answer 7

Second element of consideration. Both parties must exchange something of value and have the ability to say yes or no

Question 8

T/F: in contract law consideration refers to a serious thought that underlies a party’s intent to enter the contract

Answer 8

F

Question 9

t/F consideration is the serious thought that underlies a party’s intent to enter into a contract

Answer 9

F

Question 10

T/F- if a promise is made it will be enforced

Answer 10

False- must have additionally have legality and all other components of a contract

Question 11

When will courts consider differences in value in contracts

Answer 11

When it is an egregious example of people taking advantage of those who can’t take care of their own self-interest
ex- bible selling, old refigerator example (10 annual payments at 18% interest

Question 12

where is consideration in a contract

Answer 12

on both sides and won’t balance

Question 13

Why do we have to have consideration in a contract?

Answer 13

Expansion of money supply. Normal money spent expands at 6x while money changing hands in a contract expands at 12-24x. It’s the BEST expansion of money/consideration supply - why judges are so compelled to fix contracts

Question 14

Preexisting data

Answer 14

agreement that lacks consideration: if you promise to do what one already has a legal duty to do, that doesn’t constitute legally sufficient consideration
ex- masons agree to do job for 100,000, then ask for and sign a contract for 250,000 the contractor only has to pay 100,000 since they already agreed to that amount

Question 15

past consideration

Answer 15

agreement that lacks consideration: the bargained for exchange element is missing

Question 16

T/F: past consideration is consideration

Answer 16

False

Question 17

T/F past consideration is not consideration

Answer 17

True

Question 18

illusory promises

Answer 18

agreement that lacks consideration: promises that aren’t really a promise
ex- Bobby promises the class a curve if we do good on the exam but Bobby determines what good is

Question 19

gift promise

Answer 19

agreement that lacks consideration: doesn’t expand the money supply and emotions are involved

Question 20

You agree to pay eddie 1,000 if he quits smoking. Is this a valid contract?

Answer 20

Yes, forbearance.

Question 21

accord

Answer 21

new agreement that clarifies new agreement and works out a dispute.
Can only be used to resolve a dispute
Can not be used to solve blue bike dispute (if its something we don’t like than too bad