consideration Flashcards
what is consideration
it is what makes a promise legally binding and it is present when the promise was made as part of a bargian
Johnson v Otterbein university - Johnson gave a note to an agent of the university, and the note promised that johnson would pay the trustees of the school 100 dollars in three years, which was to be used exclusively to pay off the debt of the school, but he never paid and the school sued; issue of whether the promise to pay the school had any consideration
if the promisor gives in a ‘gift state of mind’ and not and exchange state of mind, there is no bargain, and no consideration
Hamer v sidway – uncle promised nephew that if he could refrain from drinking, using tobacco, swearing, and playing cards unit he was 21 he would pay 5000 dollars; nephew assented and fully performed, but uncle wouldn’t pay yet, and died before he gave the money to nephew, nephew sued the estate; issue of whether a promise to give money to give sometime up had the required consideration.
A party’s agreement to incur a detriment constitutes adequate consideration.
Kirksey - (the shitty bro inlaw) P was living on public land under K of a lease, d who was 70 miles away wrote to p, offered to let her live in a house he had if she would just make the travel; P moved and lived on the land for two years and then D kicked her off after two years, issue of whether there was a bargained for exchange or just a mere gratuity
Rule- a promise to provide FREE land for a residence that is fulfilled for a finite amount of time and then revoked is gratuitous and lacks consideration and thus unenforceable despite inducing the promisee to move in reliance on the promise
Moore v elmer – moore went to a psychic and she told him when he would die, he said if she was right he would pay off her mortgage; she ends up being right and sued for enforcement of the agreement
past consideration is not enough for enforcement of a contract unless the parties agreed prior to performing that compensation therefore would be provided at a later time
Webb v McGowin (this case is not one that is generally followed) - P was dropping a pine block but saw that it was going to hit D, so he held onto the log, injuring himself; in return for P saving him, D agreed to care for P and maintain hin for the rest of his life for 115 dollars a week, d ends up dying and D’s estate stopped paying P; issue of whether there was consideration that would make the promise binding
where the promisee cares for, improves, and preserves the property of the promisor, though done without his request, it is sufficient consideration for the promisors subsequent agreement to pay for the service, because of the material benefit received
Mills v wyman – P took care of D’s son who fell sick, the son was 25 years old and was considered independent of D’s family, the d wrote P promising to pay all the expenses incurred up until death of the son, there was no consideration and d changed his mind and didn’t pay; issue of whether a parent’s moral obligation is sufficient consideration for an adult child/was the moral obligation the kind that would be enforceable
a mere promise to fulfill a moral obligation will only be consideration under certain circumstances (ie its tied to a pre existing legal obligation)
what is moral consideration
some sort of moral obligation plus a later promise
Boothe v Fitzpatrick – the bull case; D’s bull escaped on Ps property, when p found out the bull belonged to d they met and d said he would pay P for keeping the bull, when d went to the p property to confirm it was his bull, he didn’t take it and p kept it, D offered P a note for the charged amount, P told him to give it to another party, d didn’t and p remained unpaid; issue of whether the promise to pay was made upon past consideration, making it unenforceable
Rule- a promise made on past consideration CAN BE BINDING IF the D received any benefit as a result
Harris v watson - D was the master of the ship, and while on voyage, d promised to pay P five dollars over the wage if he did more work; issue over if there is an original K, and additional agreement is made, do you need new consideration or can you use the consideration from the OG k?
Rule- contract modification must be supported by new consideration ; and in this case via the preexisting duty rule- agreeing to do something you were already agreeing to do isn’t consideration enough for additional promises made
Stilk v myrick - there was an employment K that said the crew would be paid 5 dollars a month, the ship had two people desert the crew, and the captain promised the crew that if he couldn’t find two more people they could split their wages; they didn’t find new men and the crew picked up the slack; issue over whether additional consideration was needed
ontract modification must be supported by new consideration ; and in this case via the preexisting duty rule- agreeing to do something you were already agreeing to do isn’t consideration enough for additional promises made
Alaska Packers v Domenico- the d’s contracted with P to sail a route and to pay each sailor 50 dollars for the season and two cents per salmon they caught. After getting to alaska, the sailors stopped working and demanded 100 dollars for the season and a representative of D signed a new K agreeing but said he did not have the authority to alter the original contracts. When they returned, D only paid them the 50 dollars, and the sailors sued; issue whether the contract modification entered w/out authority should be denied under the preexisting duty rule bc the additional agreement was not supported by consideration
Rule-If parties enter a new agreement under which one party agrees to do no more than he was already obligated to do under an existing contract, the new agreement is unenforceable for lack of consideration.– ie the pre-existing duty rule
