Consideration

Question 1

Consideration

Answer 1

A bargained-for exchange for something of legal value between parties

Question 2

Gifts & Gratuitous Promises

Answer 2

No consideration exists b/c there is no bargained-for-exchange

Question 3

Past consideration & moral obligation

Answer 3

A promise to perform a pre-existing duty or obligation generally does not constitute consideration b/c the past performance or detriment is not made in exchange for the present promise.

Question 4

Requirements of Consideration

Answer 4

1. Bargain for Exchange
2. Legal Value

Question 5

Mutuality Requirement

Answer 5

Consideration must exist on both sides of a K; otherwise, K lacks mutuality

Question 6

Illusory Promise

Answer 6

A promise that does not actually bind promisor to do or refrain from doing anything.

E.g A promise to buy “as many widgets as I may deem necessary” from B; A is not required to buy anything from B

Question 7

Promissory Estoppel

Answer 7

A promise made without formal consideration may be deemed enforceable when promisee detrimentally relies on the promise.

Question 8

Elements of Promissory Estoppel

Answer 8

1. Promisor reasonably expects reliance by promisee;
2. Promisee acts or refrains from acting such that his reliance is detrimental; and
3. Injustice will occur without enforcement of the promise.

Question 9

Modification to Contract

Answer 9

Can be enforced without consideration if -

• a party encounters unanticipated difficulties;
• the modification is fair and equitable; and
• the contract is still executory on both sides—each side still owes a performance.

Question 10

Bargained-for Exchange

Answer 10

When a promise or performance (consideration) is provided from each side in exchange for a return promise or performance provided by the other side.