fin 240 kaplowitz worksheet 13.1: elements and adequacy of consideration

(1) Legal value: Something of legally _____ value must be given in exchange for a promise. This may consist of a promise, a _____ or a forbearance. (2) Bargained-for exchange: There must be a bargained-for _____.

(1) sufficient, performance (2) exchange

Shockingly inadequate consideration can indicate the existence of what exceptions? Choose three:

undue influence. duress, fraud

Consideration is the _____ given in exchange for a promise. A contract cannot be formed without _____ consideration.

value, sufficient

Freedom of contract is absolute even in the presence of undue influence.

false

Something must be of established market value to be considered legally sufficient consideration.

false

Dewitt tells his daughter: "In consideration of the fact that you are not as wealthy as your sisters, I'm going to give you $100,000." Is the element of bargained-for exchange present here?

no, because in fact no consideration has been given

Something of legally sufficient value may consist of the performance of an action that one is otherwise not _____ to undertake. Something of legally sufficient value may consist of _____ from an action that one has a legal right to undertake (called a forbearance).

obligated, refraining

Something of legally sufficient value may consist of a promise to do something that one has no _____ legal duty to do.

prior

The second element of consideration is that it must provide the basis for the bargain, so the item of value must be given or promised by the promisor in return for the promisee's:

promise, performance, or promise of performance

Consideration can be defined as _____.

something of value given in exchange for a promise

Carmen agrees to cook twenty dinners for Hal. In exchange, Hal will repair all of the plumbing in Carmen's house. Carmen has offered legally sufficient consideration because Carmen has promised something of value.

true

Something does not have to be of direct economic or financial value to be considered legally sufficient consideration.

true