Consideration Flashcards
What is required for a promise to be enforceable in a contract?
Each party must give consideration to make the other party’s promise enforceable.
What is consideration?
An act or forbearance from acting, or a promise to act or forbear.
What is executory consideration?
Consideration that is promised for the future; once performed, it becomes executed consideration.
How must consideration be valued?
It must have some value, but the courts are not concerned with whether it is adequate or equivalent.
What happens if consideration has no value?
It is considered illusory.
Is a promise to perform an existing duty valid consideration?
No, but if something additional is offered (e.g., finishing early), there is valid consideration.
Is a promise to perform a statutory duty valid consideration?
No, it is not valid consideration.
What is past consideration and is it valid?
Acts performed in the past before the promise are not valid consideration, except if payment was understood to be due.
Is a promise to accept part of a debt as full payment enforceable?
No, it is not enforceable for lack of valid consideration.
