consideration/PE Flashcards
define consideration
something of value given by one party in exchange for promise or action of other party
is consideration needed in CISG?
no
what’s the classical Restatement view of consideration?
benefit detriment theory
define benefit detriment theory
promisor benefit OR promisee detriment
what’s the modern Restatements view of consideration?
bargaining theory - reciprocal conventional inducement
define the bargaining theory, a.k.a. reciprocal conventional inducement.
promise induced detriment, detriment induced promise
how is adequacy of consideration judged by the courts?
it’s not - courts don’t assess adequacy of consideration, just whether it’s present or absent
how is “past consideration” viewed?
not adequate to serve as consideration for a contract - past consideration is already done, so it can’t serve as consideration for a current promise
how is a pre-existing legal duty viewed in terms of providing consideration?
performance of a pre-existing legal duty to do somethign can’t serve as fresh consideration for a new promise
what’s an illusory promise?
one in which the promisor reserves a choice of alternative performance (or no performance) - not consideration
give an example of an illusory promise
i’ll pay you to paint my house, but i’ll only pay you if i like the job that you do
what’s the classical view of promissory estoppel applicability?
only applied to charitable pledges, not to any other situations
what’s the modern view of promissory estoppel applicability?
applicable to most situations, not just charitable pledges
what are the four elements of promissory estoppel?
(1) promise made (2) foreseeable reliance on promise (3) actual reliance on promise (4) substantial detriment as a result of reliance on promise
how does promissory estoppel relate to consideration?
PE can be a substitute for consideration
