Ch.2: Consideration

Question 1

Consideration consists of:

Answer 1

1. A bargained for exchange between the parties, and

2. that which is bargained for must be of legal value.

Question 2

To establish a bargained for exchange:

Answer 2

1. the promisor’s promise must induce the promisee’s detriment, and
2. the promisee’s detriment must induce the promisor’s promise

Question 3

Induce

Answer 3

To persuade or influence the other party to act or refrain from acting in a specified way.

Question 4

A detriment is generally either:

Answer 4

1. the promisee becoming obligated to perform an act that she was not otherwise obligated to perform, or
2. the promisee forbearing the exercise of a legal right that the promisee otherwise has a legal right to exercise.

Question 5

Legal value is established if there is either:

Answer 5

1. a detriment to the promisee, or

2. a benefit to the promisor

Question 6

Benefit to promisor

Answer 6

The promisor gains something that she is not otherwise legally entitled to have, such as a service, property, an increase in wealth, or other tangible gain.