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Chapter 12: Consideration (consideration - inducement to make a promise…
Chapter 12: Consideration
consideration - inducement to make a promise enforceable
legal sufficiency
legal detriment - the doing of something in which the promisee had no prior legal obligation to do so or refraining from doing something the promisee had no prior obligation to refrain from doing
legal benefit - obtaining by the promisor that he had no prior legal right to obtain
NO NEED for adequacy of consideration - the items or actions in the agreement do not need to have the same value if the parties have freely agreed to exchange
unilateral contracts - one party promisor one party promisee
bilateral contract - both parties promisor and promisee
illusory promises - statement that is in the form of a promise but gives no obligation with using words like "desire" "want" "wish to buy"
exclusive dealings contract - manufacturer of goods grants the distributor exclusive rights to sell its products in a designated market
conditional promises - performance depends on the happening or non happening of an event not certain to occur - sufficient unless the promisor knows if the event will occur prior to agreement - voidable
output contracts - agreement of a seller to sell her entire production to a particular purchaser
requirement contracts - a purchasers agreement to buy all of the sellers output
preexisting public obligations - if norton promises not to hurt bob for $100 the agreement is unenforceable because norton already has the public duty of not doing that
substitute contract - parties agree to disregard original contract and form a new one
settlement of undisputed debt - under common law, lesser payment of the debt is not legally sufficient even if the promisee says it is he can still ask for the rest of the money
since there was no legal detriment to to the promisee
unless barbara gave arnold something like a pen in place of the debt then she incurred legal detriment and he incurred legal benefit
settlement of a disputed debt -
bargained for exchange - parties have agreed upon exchange for his promise or performance
past consideration - if a party does something without contract and then the other party promises to do something in exchange it is not enforceable
third parties - consideration can be given if a third party is involved and the promisor bargain for that exchange.
ex. ill pay u 15$ if u deliver a book to bob
contracts without consideration - certain contracts are enforceable even if there is no consideration