Consideration Substitutes

Question 1

What are the two situations in which we cold us a little situation for consideration?

Answer 1

1) Promissory estoppel
2) A written promise to pay debt barred by the statute of limitations exists

Question 2

What is promisory estoppel?

Answer 2

When someone makes an promise and causes someone else to rely on the the promise to their dertriment.

Question 3

Theory of promissory estoppel?

Answer 3

You shouldn’t just be able to fuck someone over with a fake promise and make them rely on it.

Question 4

“I’m going to give you a million dollars when you retire from our office, you’ve been such a great worker!” Is there any consideration here?

Answer 4

Nope. Just a random ass promise.

Question 5

“I’m going to give you a million dollars when you retire from our office, you’ve been such a great worker!” what then happens if the worker goes and buys lots of expensive things planning to pay it off with the $1m check from his boss?

Answer 5

As the man relied on his bosses’s statement and purchased the items because he thought it was going to get the the money to pay it all off the enforcement of the promise is necessary to avoid injustice. Courts will sometimes use promissory estoppel as a consideration substitute.

Question 6

For promissory estoppel to apply what must the reliance must be?

Answer 6

Foreseeable!

Question 7

If someone makes a passing comments about investing in AI and then you go out and invest yourself and lose all your money can you blame them under promissory estoppell?

Answer 7

No it isn’t foreseeable that you would rely on a passing comment they made about AI stocks

Question 8

To have promissory estoppel we need?

Answer 8

1) A promise
2) Reasonable, foreseeable and detrimental reliance AND
3) Enforcement necessary to avoid injustice

Question 9

No reliance =?

Answer 9

No promissory estoppel. Even if the promisor doesn’t perform.

Question 10

What damages are provided under a promissory estoppel action?

Answer 10

Only the out of pocket expenses the person spent when relying.

Question 11

Man purchases a golden retriever, a house and a car under the detrimental reliance that his boss was going to give him $1m for being such a great worker. Under detrimental reliance what damages can the man claim for?

Answer 11

1) Golden retriever
2) House
3) Car

Question 12

What must you ensure when deciding whether promissory estoppel applies?

Answer 12

Whether the shit actually induced reliance

Question 13

If Goat says “I will give you a shitload of money when you retire” and then he gives you a brochure which says “Everyone at this company sticks together, even after you retire” is there detrimental reliance here?

Answer 13

No. Why would you rely on that brochure.

Question 14

Why can a written promise to pay debt barred by the statute of limitations be a consideration substitue?

Answer 14

We want to encourage people to pay their debts.

Question 15

Once a debt passes the statue of limitations do we need to pay it?

Answer 15

No!

Question 16

If we have a legal obligation that is no longer enforceable under the law (like a debt barred by the stature of limitations what is necessary to make the old obligation enforceable again?

Answer 16

A new promise to fulfill the old obligation.

Question 17

A new promise to fulfill an old obligation will be enforceable without what?

Answer 17

New consideration.

Question 18

Why is a new promise to fulfill an old obligation will be enforceable without new consideration?

Answer 18

This is just an exception to encourage people to pay of their expired debts and make their promises enforceable.

Question 19

A new promise to fulfil an old obligation must be what?

Answer 19

In writing and signed

Question 20

When a general contractor uses a subcontractors bid to make an offer on a project is this consideration?

Answer 20

No this is not normally consideration

Question 21

If Goat is a home-builder and he says “okay Rainbow Brown, you’re a carpenter.. give me your bid to help me with the carpets” and then I take that into account to make MY bid on the whole damn house. Is there an obligation for Goat to use Rainbow as his carpenter?

Answer 21

No

Question 22

If Goat asks Rainbow Brown to put together the lowest bid out of theses three bids I already have, present me a full plan, and i’ll use your bid if its the lowest” then rainbow takes all this fucking time to prepare his bid then Goat wins the contract. Does Goat now need to use Rainbow are his subcontractor for carpentry?

Answer 22

Yes!

Question 23

When would their be consideration between a subcontractor and a general contractor?

Answer 23

If someone takes time and expense to prepare a subcontractor bid for a general contractor and they are promised that they will win if they are the lowest well thats consideration and they have a strong argument that you are bound to select them if you get the contract.

Question 24

If someone says “yeah I promise to give you some flowers when I see you!!!” then the person they promised will be like “OMG YES!. Great. I promise to give you some chocolates!’ then they both show up no flowers or chocolates. Is there any consideration here?

Answer 24

No! no contract just two lonely weridos making each other gratuitious promises. It has to be bargained for consideration.

Question 25

“i’ll give you flowers because you are giving me chocolates” is there any consideration here?

Answer 25

Nope! just two weirdos promising each other and their little promises just criss cross in the wind and never come to fruition.

Question 26

In order to be consideration what must the promises be?

Answer 26

They need to be in exchange for each other not just two friends being nice to each other.

Question 27

An undisputed debt means?

Answer 27

Everyone agrees to this exact number

Question 28

Debtor owes creditor $1,000 due Jan 1st. Debt is undisputed. Jan 1st comes and goes. The nice guy creditor then says “Look.. I know you didn’t pay. So long as you pay me in two months on March 1st… I won’t sue you” A month later the creditor has a NiceGuyAttack(TM) .. and feels that his kindness is being taken advantage of and he sues the debtor on Feb 1st. A full month before his new deadline of 1st March. Is the lawsuit valid?

Answer 28

Yes! Nice guy can still sue his ass even though he gave him more time.

Question 29

If no one disputes the amount of debt owed and the creditor allows an extension on the payment date with a promise not to sue is there consideration?

Answer 29

No! you need to give something to get something when it comes to consideration. Nothing was given in return for the extension or promise not to sue. The creditor can then sue and ignore the extension.

Question 30

Debtor owes creditor an undisputed $1,000 to be paid back by jan 1st. They debtor doesn’t pay by this date. The creditor then grants a 2 month extension to March 1st and the the debtor agrees not to declare bankruptcy during this period. Can the creditor now choose to show feb 1st?

Answer 30

No! there is valid consideration here. Extension to pay in return a promise not to declare bankruptcy was given. New contract. Creditor is unable to sue.