Consideration

Wood v. Lucy, Lady Duff Gordon

A contract may be enforced when there is no evidence of a promise, exchanged as consideration, in the explicit terms of the contract; A promise to use reasonable efforts may be implied from the entire circumstances of a contract.

Schnell v. Nell

A moral consideration, only, will not support a promise; A promise to make a gift for nominal consideration or out of moral obligation is unenforceable for lack of consideration

Webb v. McGowin

A moral obligation is a sufficient consideration to support a subsequent promise to pay where the promisor has received a material benefit; When a promisee confers upon a deceased promisor a benefit that is material and substantial, and is conveyed upon the person of the promisor and not merely his estate, the promisee is entitled to recognition and compensation from the promisor's estate either by an executed payment or an executory promise to pay

Allegheny College v. National Chautauqua County Bank

A party's acceptance of a portion of a pledged donation constitutes sufficient consideration to enforce the promise to pay the remainder of the donation

Universal Computer Systems v. Medical Services Association of Pennsylvania

A principal will be estopped from denying that a contract exists when an agent with apparent authority to enter into a contract on behalf of the principal makes a promise to another party reasonably anticipating that they will rely on that promise and the other party acts in reliance on that promise to their detriment

Mills v. Wyman

A promise based on a moral obligation but made without legal consideration does not constitute an enforceable contract unless it is tied to a preexisting legal obligation

Past Considerations

A promise made for actions that already took place

Hamer v. Sidway

A valuable consideration, in the sense of the law, may consist either in some right, interest, profit, or benefit accruing to the one party, or some forbearance, detriment, loss, or responsibility given, suffered, or undertaken by the other party

Batsakis v. Demotsis

Although a valid contract requires all parties to provide consideration, mere inadequacy of consideration will not void a contract

Past Due Monetary Debts

An additional promise to do something new in substitution for the original undertaking, such as paying a debt earlier than due, would be sufficient consideration.

Clark v. Elza

An agreement to settle discharges a preexisting claim will be treated an executory accord, which will only suspend the duty under the preexisting claim unless there is clear and convincing evidence

Morin Building Products Co. v. Baystone Contruction, Inc.

An objective standard of reasonableness is the proper standard to employ in a construction contract for commercial building; when the contract involves commercial quality, operative fitness or mechanical utility which other knowledgeable persons can judge; in the alternative, satisfaction depends on the owner's good faith judgment when the contract involves personal aesthetics or fancy

Hayes v. Plantations Steel Co.

Consideration is therefore a test of the enforceability of executory promises, and has no legal effect when rendered in the past and apart from an alleged exchange in the present; Under the doctrine of promissory estoppel, acts of reliance by the promisee to his detriment provide a substitute for consideration

Promissory Estoppel

If someone makes a promise on which there is foreseeable reliance, that person has actual reliance on the promise, then they suffer a cost due to that reliance. Traditional defenses are not suitable for promissory estoppel because, no consideration, no acceptance, no written agreement; DAMAGES JUSTIFIED BY THE AMOUNT OF RELIANCE

Satisfaction Clauses

Parties sometimes grant themselves the power to terminate the contract if they are not satisfied with the other party's performance. They do so by imposing an objective standard in which the party with discretion can invoke the satisfaction clause if a reasonable person would have been dissatisfied. (quality) When it comes to aesthetics, then the dissatisfaction is subjective.

Preexisting Duty

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

Adequacy of Consideration

Refers to fairness of the amount of consideration for what is received in exchange

Consideration

Something of value that benefits each party

Reasonable Efforts Obligations

Sometimes a party doesn't specify exactly what they must do under a contract. In these scenarios, the consideration doctrine has the potential to breed perverse results. The agreement seems to lack consideration because one party doesn't incur a "detriment." Yet if the parties intended to be bound, invalidating their deal for this technicality would elevate form over substance.

Lingenfelder v. Wainwright Brewery Co.

That a promise to pay a man for doing that which he is already under contract to do is without consideration; When a party does what he has already obligated himself to do, he cannot demand any additional compensation by taking advantage of the necessities of the other party

Fiege v. Boehm

That forbearance to assert a claim before institution of suit, if not in fact a legal claim, is not of itself sufficient consideration to support a promise; but that a compromise of a doubtful claim or a relinquishment of a pending suit is good consideration for a promise; Refraining from bringing a legal action, or dropping a pending action, constitutes adequate consideration when there is some question to be resolved at the time of agreement, even if the claim is later unsuccessful

The Illusory Promise

The consideration doctrine requires each party to surrender his or her free will in some meaningful way by either (1) doing (or not doing) something or (2) promising to do (or not do) something.

James Baird Co. v. Gimbel Bros.

The doctrine of promissory estoppel cannot be asserted to compel performance if the promisee has not provided consideration to the promisor

1464-Eight, Ltd. v. Joppich

The failure to deliver nominal consideration recited in an option contract does not preclude enforcement of the option contract

Stilk v. Myrick

There needs to be a benefit or consideration for both parties; it has to be a new consideration outside preexisting duties; A contract for services cannot be modified without the payment of additional consideration

Dixon v. Wells Fargo Bank

Under the doctrine of promissory estoppel, a negotiating party to an agreement may not break a promise made during negotiations if the other party has relied on the promise to their detriment

Branco Enterprises, Inc. v. Delta Roofing, Inc.

Under the theory of promissory estoppel, a contract exists where a contractor reasonably relies on a subcontractor's oral bid in making an overall bid for a project.

Harris v. Watson

When freight on ship is lost, the wages are also lost; a promise to pay additional money during times of danger does not constitute adequate consideration to support a contract and will not be upheld