Study your flashcards anywhere!

Download the official Cram app for free >

  • Shuffle
    Toggle On
    Toggle Off
  • Alphabetize
    Toggle On
    Toggle Off
  • Front First
    Toggle On
    Toggle Off
  • Both Sides
    Toggle On
    Toggle Off
  • Read
    Toggle On
    Toggle Off
Reading...
Front

How to study your flashcards.

Right/Left arrow keys: Navigate between flashcards.right arrow keyleft arrow key

Up/Down arrow keys: Flip the card between the front and back.down keyup key

H key: Show hint (3rd side).h key

A key: Read text to speech.a key

image

Play button

image

Play button

image

Progress

1/11

Click to flip

11 Cards in this Set

  • Front
  • Back

Consideration

The inducement to enter into a contract; If no consideration, promise is not legally enforceable under contract law

2 Elements for Consideration

1. Legal sufficiency


2. Bargained-for exchange

Legal Sufficiency

A legal benefit to promisor or a legal detriment by promissee

Bargained-for Exchange

An act done in the past (past consideration) is not consideration for a present promise

4 Situations where lack of Consideration makes Promise UNENFORCEABLE

1. Gratuitous Promises (Gift)


2. Past Consideration


3. Promissee has a prior legal duty (under statute) to perform promise


4. Contract Modification (under contract)

Gratuitous Promise

A promise to make a gift; No enforceable rights because no consideration

Past Consideration

An act done before the contract is made is not consideration

Promissee has a prior legal duty (under statute) to perform its promise

Ex: Joe will pay policeman $500 to catch guy who stole his TV.




The policeman cannot accept this because there is no consideration. Policeman has a prior duty to catch criminals. (His job)

Contract Modification (Common Law)

A contract modification must be supported by mutual consideration; i.e. both parties must be doing something new.


Contract Modification (UCC)

a contract modification can be modified without new consideration; i.e. both parties must be acting in GOOD FAITH

Promissory Estoppel (Consideration)

Under modern contract law, the consideration requirement does not need to be satisfied if promissory estoppel applies