Consideration?

Question 1

Questions to ask when determining whether have consideration:

Answer 1

Did this person limit his legal freedom/forego a legal right?

Did this person bargain for what is on the other side of the K line?

Question 2

A promise needs consideration to be enforceable

Answer 2

Dougherty

Question 3

A promise to make a gift is not legally enforceable

Answer 3

Dougherty

Question 4

A promise to make a gift is not supported by consideration

Answer 4

Dougherty

Question 5

A K is not without consideration simply because the promisor is not benefited

Answer 5

Hamer

Question 6

A waiver of any legal right at the request of another party is a sufficient consideration for a promise

Answer 6

Hamer

Question 7

Past consideration is not consideration

Answer 7

Schnell

Question 8

Promising to forego a non-frivolous lawsuit is consideration

Promising to give up a frivolous lawsuit is not consideration

Answer 8

Schnell

Question 9

Nominal consideration is not consideration

Answer 9

Schnell

Question 10

Inadequate consideration is consideration

Answer 10

Schnell

Question 11

No consideration for a conditional donative promise

Answer 11

Kirksey

Ex. teling homeless person to walk around corner to get coat - condition to satisfy, did not bargain for it

Question 12

If requirement of consideration is met, no additional requirement of mutuality of obligation

Answer 12

Hancock Bank

Question 13

Consideration does not require mutuality

Mutuality defined as both sides having same rights and getting same thing under the K

Answer 13

Hancock Bank

Question 14

Requirements Contract

Answer 14

K that says “all I need” on one side

It is consideration (should be reasonable, nonzero amount)

Question 15

K that says “all I want” or “If I feel like it”

Answer 15

No consideration

Question 16

A K of sale is mutual where it contains an agreement to sell on the one side, and an agreement to purchase on the
other

It is not mutual where there is an obligation to sell but no obligation to purchase, or an obligation to purchase, but
no obligation to sell

Answer 16

Wickham

Question 17

Need mutuality of consideration to have a K

Mutuality defined as both sides bound, have to actually follow through

Answer 17

Wickham

Question 18

False recital of consideration does not negate consideration so long as there is consideration on both sides

Answer 18

Batsakis

Question 19

Improper Threat Test for when K is voidable

Answer 19

Element 1: Assent induced by improper threat

Element 2: By other party

Element 3: Leaves victim no reasonable alternative

Question 20

When a threat is improper (Terms do not matter):

A) What is threatened is a crime or tort or threat itself would be crime or tort if resulted in obtaining
property

B) What is threatened is a criminal prosecution

C) What is threatened is use of civil process and threat made in bad faith

D) Threat is breach of duty of good faith and fair dealing under another contract with recipient

Comment f: K dictated by economic forces- allowed to take advantage if you did not create the adversity

Answer 20

RS 176

Question 21

A valid K may be conditioned upon the happening of an event, even though the event may depend upon the will of the party

Answer 21

Scott

Question 22

A condition controlled by a third party does not change that both parties are bound

Answer 22

Eatherly

Question 23

To be a K, promisor must limit his freedom of voluntary choice in the future

Answer 23

Miami Coca-Cola

Question 24

Prediction of future willingness is not an expression of present willingness and is not a promise

Answer 24

Miami Coca-Cola

Question 25

``` Illusory promise (don’t have to do it/did not limit freedom) is neither enforceable against the one making it nor is it operative as a consideration for a return promise ```

Answer 25

Miami Coca-Cola

Question 26

A promise which is bargained for is consideration if, but only if, the promised performance would be consideration

Answer 26

RS 75

Question 27

Promise or apparent promise is not consideration if by its terms the promisor of purported promise reserves a choice of alternative performances

Answer 27

RS 77

Question 28

A modification of a K must be supported by consideration

Answer 28

Office Pavilion

Question 29

An illusory promise is not supported by consideration

Answer 29

Office Pavilion

Question 30

If promise “I will if I want to” then promise is illusory and not supported by consideration

Answer 30

Office Pavilion

Question 31

Any bargained for act or forbearance will constitute adequate consideration for a unilateral K

Answer 31

Harris

Question 32

If performance is bargained for, there is no further requirement of benefit to promisor or detriment to promisee

Answer 32

Harris

Question 33

A promise to use reasonable efforts is consideration

Answer 33

Lucy Lady Duff Gordon

Question 34

Performing an act that you are already obliged to do is not consideration

Answer 34

Gray

Question 35

Performance of a pre-existing legal duty is not consideration

Answer 35

Denney

Question 36

An illegal K is not enforceable

Answer 36

Gray

Question 37

A promise to pay a man for doing that which he is already under K to do is without consideration

Answer 37

Lingenfelder

Question 38

A K by both parties to void the K is supported by consideration

Answer 38

Lingenfelder

Question 39

A promise to accept partial payment as full payment of an undisputed debt amount is not enforceable (already had duty to pay what owed – no consideration)

Answer 39

Foakes

Question 40

Past consideration will be sufficient if party making promise had obligation to pay that money before but obligation unenforceable now: o Statute of limitations has run o Bankrupt o Infancy – minor under age for K

Answer 40

Mills

Question 41

A pre-existing legal obligation which has become inoperative by positive law is always a sufficient consideration to support either an express of implied promise

Answer 41

Mills

Question 42

Where the promise cares for, improves, and preserves the property of the promisor, though done without his request, it is sufficient consideration for the promisor’s subsequent agreement to pay for the service, because of the material benefit received

Answer 42

Webb

Question 43

Past consideration is sufficient consideration to support a subsequent promise to pay where the promisor has received a material benefit, although there was no original duty or liability resting on promisor (i.e. save life)

Answer 43

Webb

Question 44

If benefit is material and substantial and to person of promisor rather than to his estate, it is within class of material benefits which he has the privilege of recognizing and compensating either by an executed payment or executor promise to pay

Answer 44

Webb