Chapter 10 - Consideration

The other party promised something in exchange

A court will enforce one party's promise only if ___________.

Promise

For a _____ to be enforced by the courts, there must be consideration

Minor

Someone under the age of 18.

Adequacy of Consideration

The court rarely considers _________________.

Consideration

What a person will receive in return for performing a contract obligation; bargain-for-exchange.

Unforeseen

If ___________ circumstances cause a party to make a promise regarding an unfinished project, that promise is considered valid consideration.

Bilateral Contract

In a _____________________, the consideration for each promise is a return promise.

The promise; the act

In a unilateral contract, one party's consideration is _________, and the other party's consideration is _________.

An illusory promise is ___________.

Not a promise at all.

Past Consideration

An act done before a contract is made; consideration that is already given or some act that is already performed and therefore cannot be induced by the other party's thing, act, or promise in exchange.

Contract

Consideration is what a person will receive in return for performing a(n) ___________ obligation.

Right to Disaffirm

Designed to protect the minor from competent parties that might otherwise take advantage of the minor.

Bilateral

In a ____ contract (a promise for a promise), the consideration for each promise is a return promise. Consider this example: Sue promises to pay Mike $2,000 for his car. Mike promises to sell Sue his car for $2,000. The exchange will be done tomorrow.

Unilateral

In a ____ contract (a promise for an act), one party's consideration is the promise, and the other party's consideration is the act. Suppose your professor made the following statement in class: "If any student shows up at my house on Saturday and does the gardening, I will pay that student $100." You show up and do the gardening. The professor's consideration to you is the promise of the payment of $100 on completion of the gardening, and your consideration to the professor is the act of completing the gardening. Once again, there has been a mutual exchange of something of value.

Past Consideration and Preexisting Duty

Neither of these qualify as consideration.

Quasi Contract

Not a true contract; fails due to no agreement; court finds unjust enrichment and makes the defendant pay.

When will a court enforce a party's promise?

Only if the other party promised something in exchange (an act, money, etc.)

Preexisting Duty

Promise to do what one already has a legal duty to do does not constitute legally sufficient consideration.

- one party makes a promise knowing the other party will rely on it - the other party does rely on the promise - the only way to avoid injustice is to enforce the promise

Promissory estoppel occurs when three conditions are met.

The homeowner is not legally obligated to pay the $5,000 since the contractor had a preexisting duty to complete the pool by June 1.

Suppose a pool contractor agrees to build a pool for a homeowner by June 1. In May, the contractor informs the homeowner that he will not be able to complete the project by June 1 unless the homeowner pays him an additional $5,000 to hire more workers. Under objection, the homeowner agrees. Which of the following is an accurate statement regarding the homeowner's obligation to pay the contractor the additional $5,000?

Example of Promissory Estoppel

Suppose that on graduation from college, Amanda receives a job offer across the country. She gives up her apartment, cancels all her other job interviews, and moves all her possessions. After arriving, she rents a new apartment and shows up for work. The only problem is Amanda is told there is no job. May Amanda sue the employer? Yes, under the theory of promissory estoppel.

Promissory Estoppel

The legal enforcement of an otherwise unenforceable contract due to a party's detrimental reliance on the contract.