Consideration

Question 1

consideration

Answer 1

bargained-for exhange of legal value between parties

(benefit to promisor ro detriment to promisee)

can be promise for promise

Question 2

bargained-for exchange

Answer 2

promise must induce detriment & detriment must induces promise

Question 3

detriment

Answer 3

obligation to do or refrain from doing something that would otherwise not be obligated to do or refrain from doing

Question 4

mere peppercorn standard

Answer 4

courts do not inquire into adequacy of C

maybe unless shocks conscience of court?

Question 5

Invalid consideration

Answer 5

• gifts
• conditioinal gifts
• past consideration
• pre-existing duty
• illusory promise

Question 6

pre-existing duty exceptions

Answer 6

promise to pay debt after the SOL has run
OR
3P makes modification (no legal duty to 3P)

Question 7

modification + consideration

Answer 7

CL: new consideration needed

UCC: no new consideration needed (just good faith)

Question 8

illusory promise

Answer 8

a promise with no obligation to perform

eg A will clean B’s room if he has time

Question 9

due + undisputed debt relief

Answer 9

requires new consideration

Question 10

promissory estoppel

Answer 10

courts may enforce promise if:
1. promisor reasonably expects reliance by promisee,
2. promisee acts or refrains from acting in detrimental reliance, and
3. injustice will occur without enforcement of promise

Question 11

detrimental reliance

Answer 11

reasonable + foreseeable reliance

Question 12

promissory estoppel ET

Answer 12

PE = promise + performance

use only when NO consideration