Consideration

Question 1

Consideration

Answer 1

must have to qualify as a legally enforceable K - a bargained for exchange in legal position between 2 parties

Question 2

Elements of Consideration

& guide post

Answer 2

1. bargain for exchange
2. legal detriment

Guide post - was there a benefit to the Promisor

Question 3

[1] Bargained for exchange

Answer 3

requires that the promise induce the detriment and the detriment induce the promise.
* Mutually Induced*

Question 4

[2] Legal Detriment

Answer 4

is if the Promisee does something he is under no legal obligation to do OR refrains from doing something that he has every legal right to do.

Question 5

Illusory promise

Answer 5

Objectively not really a promise. There is a way out, within the discretion of the promisor.

Question 6

Condition on a gift

Answer 6

incidental detriment - a promise that caused detriment. no consideration

Question 7

Nominal Consideration

Answer 7

consideration that is so insignificant as to bear no relation to the value of what is being exchanged.

Question 8

Good Faith

[consideration]

Answer 8

honesty and sincerity of intent. Is detriment and can be used in making a binding K.

Question 9

Bilateral K

Answer 9

promise to promise. A K which each party promises a performance so each party is an obligator and obligee

Question 10

Past and Moral Consideration

Answer 10

not sufficient consideration, performance was already given before the promise was even made

Question 11

Promissory Estoppel

Answer 11

The principle that a promise made without consideration may nonetheless be enforced to prevent injustice if the Promisor should have reasonably expected the promisee to rely on the promise AND if the promisee actually did rely on the promise to his detriment

Question 12

Promissory Estoppel Elements

Answer 12

1. A clear and definite promise
2. the promisor intended to induce reliance by the promise AND the promisee relied on the promisee’s detriment
3. the promise must be enforced to prevent injustice

Question 13

Pre-existing legal duty

Answer 13

Traditionally the promise to perform, or the performance of, an existing legal duty is not consideration.

Question 14

Contract

Answer 14

a promise or a set of promises, for the breach of which the law gives a remedy, or the performance of which the law in some way recognizes as duty

Question 15

Expressed K’s

Answer 15

are formed orally or written

Question 16

Implied K’s

Answer 16

are formed by manifestation of assent other then oral or written. By “conduct”… ie barber

Question 17

Quasi K’s

Answer 17

are not K’s at all. they are construed by courts to avoid unjust enrichment by permitting P to bring an action of restitution to recover the amount of the benefit received by the D

Question 18

Bi-lateral K

Answer 18

Exchange of mutual promises

Question 19

Unilateral K

Answer 19

acceptance by performance. the offeror requests performance rather then promise. Promisor promises to pay upon completion of the requested act. Only 1 promisor and 1 promisee

Question 20

U.C.C.

Answer 20

uniform commercial code - supplants the states common law when the common law conflicts with that statute. Used for the “sale of goods”

Question 21

Common Law

Answer 21

judge made law through opinions. Used for “property and services” (everything else)

Question 22

Creation of a K

Answer 22

for a K there has to be…

1. was there mutual assent
2. was there consideration or a substitute
3. are there any defenses to the creation of the K

Question 23

Moral Obligation - Promise made in recognition of past benefit

$?

Answer 23

Promise for benefit received…

1. Promisor in receit of uncompensated benefit
2. Benefit was not a gift. (was there intent to charge?)
3. promise in recognition
4. Promise not binding to the extent that the value of benefit is disproportionate to promise
5. Binding to the extent necessary to prevent injustice $86

Question 24

Unjust Enrichment

- C/A, rule & remedy

Answer 24

1. plaintiff confers an uncompensated benefit - goods, service - quantum meruit
   - [Was there a benefit?]
2. intent to charge (objective test, but can be infer.)
   - not a gift
3. benefit must not be imposed
   - accepted
   - emergency situations

REMEDY - Restitution