Chapter 13 Flashcards
What is the purpose of consideration?
You give up something to receive something, incentive to fulfill promise.
Consideration In bilateral contacts, is a _________. In unilateral contracts, for ____________.
Promise, performance.
What is legally sufficient value in consideration?
Do something not legally bound to do or refrain from doing something with legal right to do, forbearance.
What is bargained-for-exchange in consideration?
Reason for action, mutual inducement (negotiation, bargaining not needed), present or future not past consideration.
What are the two main elements of consideration?
Legally sufficient (action itself), bargain for exchange (reason for action).
What is adequacy in consideration?
The fairness of the bargain. Courts do not usually care, unless fraud, duress, undue influence. Exception if unconscionable disparity like absence of choice.
What are agreements that lack consideration?
Preexisting duty, already have legal duty means no consideration. Abnormal situation.
Past consideration is ____ consideration, bargain for _______.
No, future.
What is release (consideration)?
Bars further recovery outside the release.
What is a covenant not to sue (consideration)?
Forms contractual obligation in place of other legal liability means, can still sue if contract is not executed.
What is promissory estoppel (exception to consideration)?
No contract exists, but a promise must be enforced, because promisee relied on promise.
