Chapter 10: Consideration (unedited)

Consideration

what a person will receive in return for performing a contract obligation

a benefit to the promiser, a detriment to the promisee, a promise to do something, a promise to refrain from doing something

four types of consideration

there must be consideration

for a promise to be enforced by the courts,

promissory estoppel (def)

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

promissory estoppel

one exception to the rule requiring 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

conditions promissory estoppel must meet to be used

seldom

the court _____ considers the adequacy of consideration

is not

an illusory promise ______ consideration

illusory promise

a situation in which a party appears to commit to something but really has not committed to anything.

not

an illusory promise is not a promise and thus ____ consideration

is no

past consideration _____ consideration

is not valid

promise to do something that you are already obligated to do _______ consideration

you are obligated to do under law

performance of a duty _______________ is not good consideration

existing

performance of an ______ contractual duty is not good consideration

unforeseen circumstances, additional work, ucc-sale of goods

exceptions to the preexisting-duty rule

valid

if unforeseen circumstances cause a party to make a promise regarding an unfinished project, that promise is _____ consideration

unforeseen circumstances

events that a reasonable person would not expect to anticipate

liquidated debt

debt for which there is no dispute between the parties about the fact that money is owed and the amount of money owed

may or may not, liquidated or unliquidated

partial payment for a debt ________ be valid consideration, depending on whether the debt is ____________

unliquidated debt

debt for which the parties either dispute the fact that any money is owed or agree that some money is owed but dispute the amount

_accord and satisfaction

a dispute over an unliquidated debt may be settled for less than the full amount if the parties enter into an __

accord and satisfaction

an arrangement between contracting parties whereby one of the parties substitutes a different performance for his or her original duty under the contract

the debt is unliquidated, the creditor agrees to accept as full payment less than the creditor claim is owed, the debtor pays the amount they have agreed on

three requirements for an accord and satisfaction to be enforceable three requirements must be met:

accord

the promise to perform the new duty is the

satisfaction

the actual performance of that new duty