Conditional & Illusory Promises Flashcards
Conditional Promises
The act of performance that serves as consideration is also what must be satisfied (promises exchange for consideration)
Did the brother-in-law‘s convincing of the sister-in-law to move 60 miles away bringing her family to stay for free on his land but then reneging on the agreement considered gratuitous?
Yes. It was a gratuitous promise and thus not supported by consideration. The defendant did not exchange much for motivation.
Kirksey v. Kirksey (1845)
Illusory Promise
Promise of a future performance, which can be consideration for another promise (or present performance), even if the future promises conditional on something not 100% assured. (Ex: insurance company promises to pay to rebuild house if the house is destroyed by fire).
Can D’s promise to forebear from collecting a debt constitute consideration for third-party’s promise to answer for that debt? When the promise doesn’t obligate P to forbear for length of time?
No. He promised was to forbear only until he wanted the money. He wasn’t obligated to forebear in the first place because it was no period of time specified = no consideration.
Strong v. Sheffield (1895)
Can D’s contract to employee P with the exclusive right to design and market D’s designs be forced if there’s no evidence of a promise and explicit terms?
Yes. A contract may be enforced impliedly even if there is no evidence of a promise in the explicit terms. A promise to use reasonable efforts may be implied from the entire circumstances of a contract, therefore constituting consideration by P to form a valid contract.
Wood v. Lady Duff-Gordon (1917)
Requirements Contract
Forms and exclusive consideration and commitment to each other, so the parties cannot play the market. This allows mutual wealth enhancement.
Is the contract between D and P which lists the selling of whiskey in increasing amounts for four years and let’s P be released for “any unforeseen reason” enforceable?
No. If one party has the right to cancel the contract and act at his own will, this relieves the contract of its obligation to perform -> lacking a mutual obligation.
Rehm-Zieher Co. v. F.G. Walker Co (1913)
Requirements Contract
Outputs Contract
RC: a seller agrees to provide what a buyer needs on a routine basis and no precise amount is bargained for
- generally supported by consideration because they put the buyer on the hook through exclusivity
OC: a buyer is obligated to purchase some amount of the suppliers output of the goods (ex: Vandy will buy all yearly paper from Staples)
