Consideration

Question 1

Consideration (Common Law)

Answer 1

(1) perform or return promise must be bargained for

(2) it is bargained for if it is mutually sought by both parties

Question 2

Reciprocal Concurrence

Answer 2

(1) reasons for promise must match

(2) there must be mutual reciprocal inducement

Question 3

Past consideration for gratuitous promise?

Answer 3

generally = none

1) must benefit/detriment (legal value
- no pre-existing duty or illusory promise

Question 4

Promise as consideration

Answer 4

promise for promise is valid consideration

Question 5

Pre-Existing Duty Rule

Answer 5

Common law

must be additional work/ change in work for K modification

Question 6

Unanticipated Circumstances (K Modification)

Answer 6

(1) promise made before completed performance
(2) circumstances were unanticipated; AND
(3) modification is fair & equitable

Question 7

Modification (UCC)

Answer 7

agreement modifying a K for the sale of goods needs no consideration to be binding (only good faith)

Question 8

Material Benefit Rule

Answer 8

(1) a promise made in recognition of a benefit previously received is binding to prevent injustice
(2) promise not binding:
- if the promisee conferred the benefit as a gift, OR
- to the extent its value is disproportionate to the benefit

Question 9

Promissory Estoppel

Answer 9

promisor expects to induce action or forbearance on part of promisee AND does induce action or forbearance

the promise is binding if injustice is avoided only be enforcement of the K