Consideration

Question 1

Consideration

Answer 1

Consideration is a bargained for exchange incurred by each party to a contract. The promisor usually induces legal detriment. Legal detriment generally means the promisee’s obligation to do or refrain doing something.

Question 2

Consideration/Gift

Answer 2

A promise to make a gift is generally not sufficient consideration.

Question 3

Consideration/Past or Moral Obligation

Answer 3

Something already giving or performed before the promise was made is generally not sufficient consideration.

Question 4

Consideration/Mutuality

Answer 4

Consideration must exist on both sides of the contract. This means both parties must be mutually bound.

Question 5

Consideration/Surety Promises

Answer 5

A surety promise lacks mutuality because the promise is generally gratuitous. Typically, the surety is usually not paid for his services, neither does he induces a legal detriment, or asked for anything in return.

Question 6

Substitutes for Consideration/Promissory Estoppel

Answer 6

Under the doctrine of promissory estoppel, a promise may be enforced even without consideration, when there is substantial detrimental reliance.