Consideration

Question 1

What 2 things fall under “Act” that can constitute as consideration?

Answer 1

1. Love & affection

2. Implied duty of good faith and fair dealing

Question 2

What 3 things can consideration be, other than money?

Answer 2

1. Act/Promise of an Act
2. Forbearance
3. Creation or destruction of a legal relationship

Question 3

What 2 things can constitute as consideration substitutes?

Answer 3

1. Accord & satisfaction

2. Promissory estoppel

Question 4

What 2 things can consideration NOT be?

Answer 4

1. Past consideration (cannot be bound by offering consideration for something that has already happened)
2. Moral duty

Question 5

What is the 1 weird consideration rule?

Answer 5

Moral duty + subsequent promise = consideration

(If you have both a strong moral duty to do something and you follow it up with a promise for something in the past, it does meet one side of a quid pro quo)

Question 6

What is the one limit to consideration?

Answer 6

The pre-existing duty rule

Where someone has a contractual duty to perform, they cannot seek more compensation to perform what they were already bound to do

Question 7

The pre-existing duty rule mitigates a violation of which UCC provision?

Answer 7

UCC § 2-209

Question 8

What is Adequacy of Consideration?

Answer 8

Just because a contract is a “bad deal” for one party does not void the contract where there’s been consideration on both sides already