Consideration

Question 1

What is consideration

Answer 1

Consideration is a legal detriment or bargined - for exchange. A promise to make a gift does not constitute a consideration.

Question 2

What is the pre-existing duty rule

Answer 2

Under the common law, promising to perform a legal duty already owed to a promisor is not valid consideration.

Exceptions: inclues if the duty is changed, unforeseen circumstances.

Question 3

Material Benefit exception

Answer 3

some states recognize an exception recognizes an exception to past consideration limitations in which a promise is made after receipt of a significant benefit.

Question 4

Modification under the UCC

Answer 4

Only good faith is needed to modify a contract.

Question 5

Promissory estoppel

Answer 5

Promises that lack consideration may still be enforced if:

1. Promise
2. reliance that is foreseeable and justifiable
   3 enforcement is necessary to avoid injustice, the promise will be enforced.