Blw 201 Stiles Chapter 11 Consideration

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The courts generall do not enforce a promise against the person who made it unless the person the promise was made to has

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given up something in exchange for the promise.

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The person who made the promise

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Promisor

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The person the promise was made to

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Promisee

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The requirement of consideration requires a promisee to pay the "price" the promisor asked for in order to gain

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the right to enforce the promisor's promise.

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Legal value, bargained for and given in exchange for an act or promise.

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Consideration

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Two ways consideration can have legal value

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1) If the promisee does or agrees to do something he or she had no prior legal duty to do in exchange for the promisor's promise.
2) If the promisee agrees no to do something he or she has a legal right to do in exchange for the promisor's promise.

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Things can have legal value with out having

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monetary value.

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The freedom to make bad bargains as well as good ones.

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Freedom of contract.

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If the inadequacy of consideration is apparent of the face of the agreement

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It is most like unenforceable.

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Agreements that recite "$1" or "$1 and other valuable consideration" as the consideration for the promise.

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Nominal consideration.

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Courts may refuse to grant _________ to those who seek to enforce grossly inadequate bargains on the grounds that such persons are not entitled to the special treatment equity affords.

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Equitable remedies.

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Saying consideration must be bargained for means that

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in addition to having legal value, the consideration given by the promisee must be the consideration the promisor requested in exchange for makin his or her promise.

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Since bilateral contract by definition include two promises, each party is

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both a promisor and promisee.

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Merely making the requested promise is enough for consideration in

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bilateral contracts.

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Three questions to help determine whether consideration has been given in a case.

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1) What promise is at issue?
2) Who is the promisee of that promise?
3) Has the promisee given consideration?

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If the promisor already had a duty to do what he has done or promised to do, the promisor has not given legal duty or if the promisor agreed not to do something he had not right to do is an example of

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Prexisting duty.

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Cases that occur when the parties attempt to modify an existing contract but no new consideration is furnished to support the agreement to modify.

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prexisting duty cases involving contractual duties

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The parties to a contract can alway terminate their old contract and enter into a new one by __________ even if the obligations of one party remain the same while the obligations of the other party are increased.

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mutual agreement (novation)

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If a contracting party runs into something that makes his or her performance impossible or highly impracticable.

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unforeseeable difficulties

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Agreements to modify contract for the sale of goods

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need no consideration to be binding.

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Two provisions of the Code to protect people from fictitious claims that an agreement has been modified.

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1) If the original agreement requires any modificationto be in writing, an oral modification is unenforcable.
2) Regardless of what the original contract says, if the price of goods in the modified agreement is $500 or more, the modification is no enforceable unless it is in writing or other requirements of the Codel's satute of frauds are met.

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A promise to discharge a __________ for part payment of the debt at ora after its due is unenforceable due to lack of consideration.

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liquidated debt

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A debt that is due and certain, there is no dispute about the existence or the amount of the debt.

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liquidated debt

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An honest dispute about the existence or amount of a debt makes the debt an

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unliquidated debt.

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The legal term for settling a disputed claim

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accord and satisfaction.

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Agreements between a debtor and two or more creditors who agree to accept a stated percentage of their liquidated claims against the debtor at or after the due date., in full satisfaction of their claims.

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Compositions

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The courts generally hold that past consideration is

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no consideration.

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If a promisee's performance was rendered before the promisor's promise was made, then it can never serve as consideration under what

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past consideration

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Some courts and legislature hav ecreated an exception to the past consideration rule for

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moral obligations.

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Cases usually contain promises made by a promisor to pay for board and lodging previously provided to a needy relative or a very close friend, or a promise to pay the debts of a relative.

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Moral obligation

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This occurs when someone promises not to file a legal suit in exchange for a promise to pay a certain sum of money or some other consideration.

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Forbearance

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A promise worded in a way that allows the promisor to decide whether or not to perform the promise.

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Illusory promise

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What are some of the exceptions to the requirements of consideration?

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Promissory Estoppel, Firm Offers, Charitable Subscriptions, Debts barred by Bankruptcy Discharge or the Statute of Limitations.