Consideration And Promissory Estoppel

Front 1

Rule for Consideration

Back 1

Consideration requires bargained-for-exchange for something of legal value.

Front 2

Bargained-for

Back 2

An offer is bargained-for when the offeree could reasonably believe that the intent of the offeror was to induce the action.

Front 3

These two things are not bargains

Back 3

1. Gifts
2. Past Consideration

Front 4

Legal Detriment

Back 4

legal detriment results when the promisee does or refrains from doing something he or she is under no legal obligation to do but has the legal right to do.

Front 5

(4) Factors involving legal detriment:

Back 5

1. Pre-existing duty rule- no detriment
2. Contract modification needs some kind of new consideration
3. UCC exception--NO consideration required to modify contract for sale of goods, only good faith
4. Compromise of Claim (Valid or Invalid)

Front 6

Rule for Promissory Estoppel

Back 6

Promissory Estoppel, relied-upon legal detriment, will substitute as an element of contract formation in cases where consideration is absent.

Front 7

(2) Factors involving Promissory Estoppel

Back 7

1. Legal Detriment- same as consideration
2. Relied-upon-- Promisor should reasonably expect action or forbearance and such action or forbearance is in fact induced (charitable contributions).