Restatement Qs

Front 1

A offers to buy a book owned by B and to pay B $10 in exchange therefor. B accepts the offer and delivers the book to A. Is there consideration for A's promise to pay B $10?

Back 1

The transfer and delivery of the book constitute a performance and are consideration for A's promise. This is so even though A at the time he makes the offer secretly intends to pay B $10 whether or not he gets the book, or even though B at the time he accepts secretly intends not to collect the $10. The law is concerned with the external manifestation rather than the undisclosed mental state: it is enough that one party manifests an intention to induce the other's response and to be induced by it and that the other responds in accordance with the inducement.

Front 2

A receives a gift from B of a book worth $10. Subsequently A promises to pay B the value of the book. Is there consideration for A's promise to pay B $10?

Back 2

There is no consideration for A's promise. This is so even though B at the time he makes the gift secretly hopes that A will pay him for it. It is not enough that the promise induces the conduct of the promisee or that the conduct of the promisee induces the making of the promise; both elements must be present, or there is no bargain. As to the enforcement of such promises, see § 86.

Front 3

A promises to make a gift of $10 to B. In reliance on the promise B buys a book from C and promises to pay C $10 for it. Is there consideration for A's promise?

Back 3

There is no consideration for A's promise. As to the enforcement of such promises, see § 90.

Front 4

A desires to make a binding promise to give $1000 to his son B. Being advised that a gratuitous promise is not binding, A writes out and signs a false recital that B has sold him a car for $1000 and a promise to pay that amount. Is there consideration for A's promise to give his son $1000?

Back 4

There is no consideration for A's promise to give B $1000. A mere pretense of a bargain does not suffice, as where there is a false recital of consideration.

Front 5

A desires to make a binding promise to give $1000 to his son B. Being advised that a gratuitous promise is not binding, A offers to buy from B for $1000 a book worth less than $1. B accepts the offer knowing that the purchase of the book is a mere pretense.Is there consideration for A's promise to give $1000 to B?

Back 5

There is no consideration for A's promise to pay B $1000. A mere pretense of a bargain does not suffice, as where the purported consideration is merely nominal.

Front 6

A offers to buy a book owned by B and to pay B $10 in exchange therefor. B accepts. If both parties know that such books regularly sell for $5 and that part of A's motive in making the offer is to make a gift to B, is there consideration for A's promise to pay B $10?

Back 6

B's transfer and delivery of the book are consideration for A's promise. Ordinarily, courts do not inquire into the adequacy of consideration. The social functions of bargains--e.g., opportunity for free individual action and exercise of judgement and the fixing of values by private action--would be impaired by judicial review of the values so fixed. See §§ 79, 81.

Front 7

A owns land worth $10,000 which is subject to a mortgage to secure a debt of $5,000. A promises to make a gift of the land to his son B and to pay off the mortgage, and later gives B a deed subject to the mortgage. Is B's acceptance of the deed consideration for A's promise to pay the mortgage debt?

Back 7

No, even though B assumes a burden by accepting the deed. A promise to make a gift is not made a bargain by the promise of the prospective donee to accept the gift, or by his acceptance of part of it. This may be true even though the terms of gift impose a burden on the donee as well as the donor.

Front 8

A and B agree that A will advance $1000 to B as a gratuitous loan. Is B's promise to accept the loan consideration for A's promise to make it?

Back 8

No, but the loan when made is consideration for B's promise to repay. In some cases there may be no bargain so long as the agreement is entirely executory, but performance may furnish consideration

Front 9

A promises B, his nephew aged 16, that A will pay B $1000 when B becomes 21 if B does not smoke before then. Is B's forbearance to smoke consideratin for A's promise?

Back 9

Yes. Consideration may consist of a performance or of a return promise.

Front 10

A says to B, the owner of a garage, “I will pay you $100 if you will make my car run properly." If B makes A's car run properly, is there consideration for A's promise to pay $100?

Back 10

Yes. Consideration may consist of a performance or of a return promise.

Front 11

A has B's horse in his possession. B writes to A, “If you will promise me $100 for the horse, he is yours.” A promptly replies making the requested promise. Is there consideration for A's promise to pay $100?

Back 11

Yes, the change in ownership is consideration for A's promise. The property in the horse at once passes to A. The offeror or the offeree may request as consideration the creation, modification or destruction of a purely intangible legal relation.

Front 12

A promises to pay B $1,000 if B will make an offer to C to sell C certain land for $25,000 and will leave the offer open for 24 hours. B makes the requested offer and forbears to revoke it for 24 hours, but C does not accept. Is there consideration for A's promise to pay B $1,000?

Back 12

Yes, the creation of a power of acceptance in C is consideration for A's promise. Sometimes the consideration bargained for is an act with the added requirement that a certain legal result shall be produced.

Front 13

A mails a written order to B, offering to buy specified machinery on specified terms. The order provides “Ship at once.” B ships upon receipt of the letter. Is there consideration for A's promise to buy the specified machinery on specified terms?

Back 13

Yes, B's prompt shipment or promise to ship is consideration for A's promise to pay the price. The consideration invited may be a performance or a return promise in the alternative.