Consideration Flashcards
What are the two forms by which consideration can be given?
Benefit and Legal Detriment
Benefit
giving something of value
Legal Detriment
giving up legal right or refraining from a certain act
T/F: The court inquires into the adequacy of consideration
False; if parties freely agreed to exchange the court will not interfere
Exclusive Dealing
One party gives up the right to contract with others for a period of time. Period of time must be reasonable
Conditional Promise
(Precedent, Subsequent) When and if condition happens, the act is executed
T/F: A pre-existing duty does not operate as consideration.
True; If one already has the legal duty to act, promising to perform that act does not qualify as consideration
Modification of Contract
parties can effectively modify a contract without new consideration, provided they both intend to modify and act in good faith
Substituted Contract
Parties agree to discharge the original contract and form a new contract
Accord and Satisfaction
a promise to pay a lessor sum for a debt that is in good faith dispute is enforceable.
T/F: If there is no good faith dispute, the promise to pay a sum less than the sum owed is enforceable
False; it is NOT enforceable if there is no good faith dispute
T/F: Past consideration is not legal consideration
True; To promise to pay because of a past act of another party is a gratuitous promise and is NOT enforceable
Waiver
to give up a legal right
Firm Offer Rule
an offer by a marking in a signed writing promising to keep the offer open for a stated or reasonable time; the promise is enforceable despite no return consideration
Statute of Frauds
the requirement that:
certain contracts be memorialized in writing,
signed by the party to be charged,
with sufficient content to evidence the contract.
