Chapter 12- Consideration

Question 0

Elements of consideration

Answer 0

1. Something of legally sufficient value must be given in exchange for the promise
2. There must be a bargained for exchange

Question 1

Consideration

Answer 1

The value (such as cash) given in return for a promise.

Question 2

Legal value

Answer 2

1. A promise to do something that one has no prior legal duty to do so
2. The performance of an action that one is otherwise not obligated to undertake
3. The refraining from an action that one has a legal right to undertake (forbearance)

Question 3

Forbearance

Answer 3

The refraining from an action that one has a legal right to undertake

Question 4

Bargained for exchange

Answer 4

Must provide the basis for the bargain struck between the contracting parties

Question 5

Preexisting duty

Answer 5

A promise to do what one is legally obligated to do is not legally sufficient consideration

Question 6

Unforeseen difficulties

Answer 6

In honor of fairness and equity, sometimes there are exceptions to Preexisting duty.

Question 7

Recession

Answer 7

Unmaking of a contract so as to return the parties to the positions they occupied before the contract was made.

Question 8

Illusory promise

Answer 8

If the terms of the contract express such uncertainty of performance that the promisor has not definitely promised to do anything