Chapter 15

Question 1

Consideration

Answer 1

the bargained for exchange or what each party gets in exchange for his or her promise under the contract.

Question 2

3 Dimensions of Consideration

Answer 2

○ To give up something of value they have a legal right to keep, such as money or property
○ To do something they are not otherwise legally required to do, such as performing a service;
To refrain from an action

Question 3

Forbearance

Answer 3

is then the promise to refrain from doing something that a party has a legal right to do, or the promise of inaction.

Question 4

Consideration in a contract may be more than

Answer 4

just the promises exchanged by the parties, but the actual benefit gained and the detriment suffered by them.

Question 5

Party who makes a promise

Answer 5

the promisor

Question 6

Party receiving the promise

Answer 6

promisee

Question 7

For the performance of a certain act

Answer 7

A party who makes a promise, the promisor, may make a promise to pay a sum of money to another party, the promisee,

Question 8

Characteristics of Valid Consideration

Answer 8

1. Legality
2. Adequacy
3. Possibility of performance

Question 9

Characteristic: Legality

Answer 9

A valid contract does not exist if the consideration is a promise to perform an illegal act (or to avoid performing a legal act or an act that is legally required to be performed)

Question 10

Characteristic: Adequacy

Answer 10

1. Judging whether or not the exchange of promises in a contract was fair.
2. In an attempt to level the playing field, may consumer protection statutes have been passed.
3. The notions of unconscionable contract and contracts of adhesion are now widely applied.

Question 11

Characteristic: Possibility of Performance

Answer 11

A legally enforceable contract cannot be based on a promise that is impossible to fulfill.

Question 12

3 Kinds of Consideration

Answer 12

1. An exchange of promises
2. Forbearance
3. Pledge or subscriptions

Question 13

Promise

Answer 13

A promise of an act by one party in exchange for the promise of an act by another is a valid consideration.

Question 14

A Promise of Forbearance

Answer 14

One party to a contract may wish to exchange his or her promise to pay money for a promise of inaction from the other party.