Page 14 Flashcards
What is a bargain?
Exchange of promises and acts where each party views what they give as the price for what they get
If you promise to forbear or actually forbear from performing something you’re legally entitled to perform, can that be a bargain?
Yes
What is the bargain theory of consideration?
A bargain equates to consideration
When does the consideration substitute apply?
When real consideration is not present
What is an example of a consideration substitute?
Promissory estoppel
What is promissory estoppel?
If promisee detrimentally, reasonably, and foreseeably relies on a promise, it becomes enforceable
If a law school puts up a sign on the bulletin board saying $500 to whoever wins a writing competition, and a student wins, does promissory estoppel apply here?
No, it isn’t necessary, if the student didn’t rely, then you don’t need a consideration substitute, you just use normal consideration
What are UCC substitutions for consideration?
- merchant’s firm offer
- modifications
If someone pays for the right to keep something open, is merchant’s firm offer the answer?
No, it is just an option contract
Does a modification under the UCC require consideration?
Not if it is made in good faith
If a modification is made to a contract by changing the item and the price, do you need to use the modification substitute for consideration under the UCC?
No, because there was consideration since both parties gave something up
What are promises that raise consideration issues?
- bargain promises
- those involving accord and satisfaction
- promises to waive conditions
- donative promises
- promises based on past or moral consideration
What are some bargains that are not consideration?
- nominal consideration
- illusory promises
- promises to do what you’re already legally obligated to do
- promise to surrender/forebear when it is unreasonable
Is nominal consideration good enough for a bargain?
No, it is a bargain in form but not in substance, so there’s no real bargain
Does nominal consideration make a donative promise enforceable?
No