Chapter 13: Consideration Flashcards
What are the two elements of Consideration?
- something of legally sufficient value must be given in exchange for the promise
- there must be a bargained-for exchange
If both parties have a voluntary right to say yes or no to a contract, you have a:
bargained-for exchange
a promise to do what one already has a legal duty to do does not constitute legally sufficient consideration
Preexisting Duty
T or F: In contract law, the term consideration refers to the serious thought that that underlies a party’s intent to enter into a contract
False
In contract law, consideration means ________ .
value
T or F: In contract law, if a promise is made, it should be enforced.
False
What are four things that have “legal value”?
- Value (money, property)
- Promise
- Performance
- Forbearance
not doing something that you have the legal right to do in exchange for something of value
forbearance
T or F: Courts typically will not consider adequacy of consideration.
True
Why do courts typically not consider adequacy of consideration?
Because it has to do with value and value of something is different for everybody and value changes over time.
Who determines the value of anything?
the buyer
is no consideration because the bargained-for exchange element is missing. (IS NOT CONSIDERATION)
past consideration
promisor has not definitely promised to do anything (no promise at all)
illusory promise
Why do we have to have consideration in a contract?
Because contracts have a positive effect on society
What are the agreements that lack consideration?
- pre-existing duty
- past consideration
- illusory promises
- gift promises
