Consideration (Contract Law CH 2)

The Promissory Estoppel princple applies when the following three elements are proven?

1) A party has made a promise expecting another party to act, or to forbear from acting, in reliance on that promise 2) The other party has justifiably relied on the promise to his or her detriment and acts or forbears from acting 3) Only enforcement of the promise would achieve justice

Describe Charitable Subscription situation?

A pledge to provide money to a organization that depends on vonluntary contributions is fully binding as if consideration supported it.

Describe Promissory Estoppel (Questions of Fact to be determined by judge or jury)

A promise is enforceable if necessary to prevent injustice if (1) promisor should reasonably expect to induce action or forbearance, (2) of a definite and substantial character, (3) and such action or forbearance is actually induced.

Consideration necessary to make a promise enforceable

A return promise An act peformed A forbearance from acting

Why would exceptions to the consideration requirement be made to allow enforceable contracts

Equitable or public reasons or state law makes specific exceptions

Valuable Consideration

Necessary and sufficient to support a valid contract

Three types of consideration insufficient for forming a binding contract:

Past Consdieration Promises to perform existing obligations Compromise and release of claims

When a promise to perform an Existing Obligation is accepted as consideration

Police officer is offered a reward for going into a burning building to collect property, at GREAT RISK, the performance constitutes a claim for reward.

To constitute valuable consideration, an act or a promise must involve_

Present and Future Commitments

What are the two concepts or exceptions that apply for contracts without consideration

Promissory Estoppel Charitable subscriptions

For the element of consideration to be sufficient to create a valid contract, the promisor must receive _

a legal benefit, such as money, or the promisee must suffer a legal detriment, such as inconvience, loss, or relinquishment of something of value

In order for forbearance to be considered valid consideration,_

a right must be given up

Good Consideration

based on natural love or affection, or on moral duty, that is not sufficient to support a contract

Forbearance as sufficient consideration

is commonly seen in cases of compromise, can represent a promise to refrain from suing

Accord and Satisfacton allow this during transactons of Compromise and Release of claims

payment of less than the original debt

A new promise to pay a debt previously unpaid is enforceable without consideration, if:

promisor is bankrupt one party was minor when original contract was made, time for payment has ended

Consideration

something of value given as part of the agreement