CONSIDERATION

consideration

something of value exchanged in return for a promise to make the contract enforceable

promisor

the party making a promise in a contract

promisee

the party seeking to enforce the promise

bilateral consideration

mutual promises exchanged between two parties

unilateral consideration

a promise made in exchange for an act, rather than another promise

deed

a formal promise made in writing and executed with specific rituals to indicate binding intention. signed and sealed

nudum pactum

an agreement without consideration that is not legally binding

past consideration

consideration for a promise that has already been performed before the promise was made

existing legal duty

a duty that a party is already obligated to perform under the law or an existing contract

illusory promise

a promise that is so vague or ambiguous that is does not create a real obligation

benefit/detriment requirement

the promisee must confer a benefit on the promisor or incur a detriment in return for the promise

bargain requirement

the consideration must be given in return for the promise, establishing a quid pro quo (this for that)

quid pro quo

a mutual exchange

consideration must move from the promisee

consideration must come from the promisee but does not necessarily have to go to the promisor directly (can move to a third party - bank)

adequate consideration

consideration that is adequate to support the contract, though it need not be equal or fair in value as this is considered a matter of opinion