Consideration

Question 1

What is consideration?

Answer 1

a bargained for exchange of legal value

Question 2

When is consideration present?

Answer 2

1. the promisee incurs a legal detriment or the promisor receives a legal benefit, AND
2. the promise induces the detriment. and the detriment induces the promise

Question 3

What are the requirements for contract modification under CL and UCC?

Answer 3

CL: must be supported by consideration otherwise violates the pre-existing duty rule (a promise to do something you are already have a legal duty to do is not consideration)

UCC: no consideration, just requires good faith

Question 4

When can a CL contract be enforced without consideration?

Answer 4

By promissory estoppel: if

(1) the promisor should reasonably expect the promise to induce action or inaction from the promisee,
(2) the promise does induce such action or inaction to the promisee’s detriment, AND
(3) injustice can be avoided only be enforcement of the promise