Consideration and Promissory Estoppel

Question 1

Gratuitous promise

Answer 1

A promise to make a gift, generally unenforceable.

Question 2

Want of consideration

Answer 2

absence of a bargained-for exchange

Question 3

Failure of consideration

Answer 3

party’s failure to perform in accordance with his promise - breach

Question 4

Legal detriment test

Answer 4

Whether the promisee is doing something he had a legal right NOT to do, or is foregoing some activity in which he had a legal right to exchange.

Question 5

Inadequacy of consideration - modern rule

Answer 5

Courts don’t police the fairness of the exchange for purposes of the consideration doctrine.
We don’t care that you think you got a raw deal.

Question 6

Don’t confuse insufficient consideration and inadequate consideration.

Answer 6

Insufficient - means there was NO consideration, and thus no K

Inadequate - assumes there is consideration, but argues that it’s not enough.

Question 7

How may a party defeat an excessively one-sided bargain?

Answer 7

the defense of unconscionability

Question 8

Illusory promise

Answer 8

a promise to perform that leaves the performance to the discretion of the promising party, and does NOT constitute consideration

Question 9

Executed Gifts

Answer 9

gratuitous transfers that ARE legally binding and enforeceable

Question 10

What does it take to “execute” a gift?

Answer 10

1. intent to give a gift
   AND
2. actual delivery or symbolic delivery (like the keys to a car)

Question 11

False recitals

Answer 11

false recitals do NOT meet the requirement of consideration