Consideration Flashcards
Consideration
Is evidence by a bargained for change in the legal position of the parties
Virginia rejects the modern trend of enforcing past consideration under the
Material benefit rule
Virginia does not recognize Promissory Estoppel as a cognizable cause of action meaning that
Promissory estoppel cannot be asserted as an affirmative claim
Illusory Promise
Is not valid consideration. When an offeror does not actually make a real promise. Think, can you sue for breach ?
Gifts
The promise to give a gift is not valid consideration. Once a gift is given it cannot be taken back.
Past Consideration
Is not valid consideration. However, some JDX use the material benefit rule
Promise to pay a debt barred by SOL
Is an enforceable promise
Giving up the right to sue
Is valid consideration
Promissory estoppel
Arises when an offeree reasonably and detrimental relies on the offer in some foreseeable manner
Look especially for a general contractor/subcontractor context
Accord and satisfaction
Ask whether the debt is currently due and undisputed, If so, the modification is not binding
A disputed debt is that is compromised cannot be sued for the remainder
An undisputed debt that is settlement can be sued for the remainder
The UCC rejects the
Pre-existing duty rule
The UCC rejects the
Pre-existing duty rule
Common law modification
New Consideration is required
A contract modification under the UCC is valid so long as
It was made in good faith
(doesn’t matter if it was made with consideration)
In Virgina, The elements for a quasi contract are
1) Plaintiff confers a benefit
2) D knows that the benefit has been received
3) It would be inequitable to retain the benefit without paying
