Consideration Flashcards
Doing an act one is not legally obligated to do or not doing an act that one has a legal right to do
Legal Detriment
Not required where the parties have freely agreed to the exchange
Adequacy
Promise that imposes no obligation on the promisor
Illusory Promise
One where the obligations are contingent upon the occurrence of a stated event
Conditional Promise
Grant to a franchisee or licensee by a manufacturer of the sole right to sell goods in a defined market
Exclusive Dealing Contract
Agreement to buy all of one’s needs from a single producer
Requirements Contract
Agreement to sell all of one’s production to a single buyer
Output Contract
Public duties such as those imposed by tort or criminal law are neither a legal detriment nor a legal benefit
Preexisting Public Obligations
Performance of a preexisting contractual duty is not consideration
Preexisting Contractual Obligation
A mutually agreed-upon exchange
Bargained-For Exchange
The inducement to enter into a contract
Consideration
Consists of either a benefit to the promisor or a detriment to the promisee
Legal Sufficiency
- Promise to Pay Debt Barred by the Statute of Limitations a new promise by the debtor to pay the debt renews the running of the statute for a second statutory period
- Promise to Pay Debt Discharged in Bankruptcy may be enforceable without consideration
- Voidable Promises a new promise to perform a voidable obligation that has not been previously avoided is enforceable
- Moral Obligation a promise made to satisfy a preexisting moral obligation is generally unenforceable for lack of consideration
Contracts without Consideration
Doctrine that prohibits a party from denying her promise when the promisee takes action or forbearance to his detriment reasonably based upon the promise
Promissory Estoppel
An act done before the contract is made is not consideration
Past Consideration
