Consideration

Question 1

Consideration

Answer 1

A bargained-for exchange of something of legal value

Question 2

Something of Legal Value

Answer 2

A promise to do or refrain from doing something one is not already legally obligated to do

Doesn’t have to have financial value

Question 3

Sham Consideration

Answer 3

Something that’s not really intended to serve as a consideration is NOT consideration

The possibility that the thing could have value is sufficient to constitute consideration

Question 4

Past Consideration

Answer 4

Something that was done that would have been consideration if it were bargained for when done, but it wasn’t bargained for

Question 5

Preexisting Duty Rule

Answer 5

When a party promises to do something, but halfway through doing something they demand something else (more money), the other party is not obligated to do such thing because the original party was obligated to already do that thing

Question 6

New Consideration

Answer 6

If there is a promise to do anything new or different from the original promise, no matter how slight the change, there is new consideration

Question 7

Unanticipated Circumstances

Answer 7

Circumstances that were not anticipated at the time the contract was made (more expensive)
- Contract could not be fully performed on either side

Question 8

Article 2 Exception

Answer 8

A K can be modified without consideration as long as the modification is sought in good faith