Consideration Flashcards
Consideration
a 1) bargained for exchange which has 2) legal value.
There is no bargained for exchange when a _______ is given to someone
gift
Is promising to perform or to not do something valid consideration?
Yes
Is a promise given in exchange for something already done satisfy the bargain requirement?
No
How valuable must consideration be?
so long as consideration has some value, it is sufficient.
Is something that is not immediately evident to be valuable valid consideration?
if there is a possibility of value in the thing bargained for, consideration will be found even if the value never comes into existence.
Preexisting Legal Duty Rule
performing or promising to perform an existing legal duty is insufficient consideration.
Is the payment of a smaller sum sufficient consideration for a promise by a creditor to discharge a debt?
generally, no. However, if there is new or different consideration, the court will likely hold it as sufficient consideration.
When is promising not to sue on a claim sufficient consideration?
Where the claim is valid or the claimant in good faith believes the claim to be valid.
If only one party is bound to perform, the promise is _____________.
illusory; i.e. not valid.
A promise to choose one of several alternative means of performance is illusory unless . . .
every alternative involves legal detriment to the promisor.
Promissory estoppel, a.k.a. . . .
detrimental reliance
Detrimental Reliance
a promise is enforceable if necessary to prevent injustice if 1) the promisor should reasonably expect to induce action or forbearance; and 2) such action or forbearance is in fact induced.
In the case of promissory estoppel, courts following the common law will award what kind of damages in additional to enforcing the contract?
expectation damages
In the case of promissory estoppel, courts following the Second Restatement of Contracts will award what kind of damages in additional to enforcing the contract?
reliance damages
