Consideration

Question 1

Past/Moral Consideration

Answer 1

IS NOT CONSIDERATION!

In most jurisdictions, not considered sufficient consideration because it was not bargained for.

If something was already given or performed before the promise was made, it will not satisfy the “bargain” requirement because it was not given in exchange for the promise AT PRESENT.

I.E.: The father of a young child whose life was saved by doctors at a hospital emergency room…called president…he will donate 50k…accepted offer, approved purchase, etc.

Best argument instead would be detrimental reliance.

Does NOT matter if offer was definite and certain, if CONSIDERATION is NOT present!

Question 2

Unilateral Ks

Answer 2

Once performance begins, Offeror CANNOT cancel the offer.

Mere preparation is NOT enough.

“If you do “X,” for so many months, I will pay you “Y.”

Question 3

Old Common Law: Modifications

Answer 3

Need new consideration to modify K, because of Pre-Existing Duty Rule.

Even a slight change, suffices.

I.E.: Completing project quicker, reducing price, adding something in, etc.

Question 4

UCC: Modifications

Answer 4

No consideration needed, as long as modification is made under “Good Faith.”

Question 5

New Common Law: Modifications

Answer 5

• Fair
• Equitable
• Need for the modification was unforeseeable at the time of entering K.

Question 6

Accord and Satisfaction

Answer 6

A valid accord, taken alone, does not discharge the prior contract. It merely suspends the right to enforce it in accordance with the terms of the accord contract

The performance of the accord agreement, which is called satisfaction, discharges not only the accord agreement but the original contract as well.