Consideration

Question 1

Consideration §71

Answer 1

to constitute consideration, a performance or return promise must be bargained for. It is bargained for if it is sought by the promisor in exchange for their promise and is given by the promisee in exchange for that promise. Does not apply to pre-existing legal duty or past events.

Question 2

Benefit Previously Received

Answer 2

a promise made in recognition of a benefit previously received by the promisor from the promisee is binding to the extent to prevent injustice.

Question 3

Illusory Promise

Answer 3

a promise whereby the promisor retained an unlimited right to decide later the nature or extent of his performance, is no promise.

Question 4

UCC 2-209 K Modification

Answer 4

an agreement modifying a K needs no new consideration to be binding, only good faith.

Question 5

K modification CL § 89

Answer 5

K modification under CL requires new consideration

Question 6

Promissory Estoppel

Answer 6

Available as a substitute for consideration if the promisor makes a promisee which he reasonably expects to induce action or forbearance by the promisee and which does induce such action or forbearance is binding if injustice can only be avoided by enforcing the promise.