CONSIDERATION

Question 1

CONSIDERATION

Answer 1

(1) The PROMISEE incurs a legal detriment or PROMISOR receives a legal benefit; AND
(2) The PROMISE induces the detriment AND the detriment induces the promise.

Question 2

LEGAL DETRIMENT

Answer 2

(1) promising to do something the party has no prior legal duty to do;
(2) performing an action that the party is not otherwise obligated to undertake; or
(3) refraining from or promising to refrain from exercising a legal right which the party is otherwise entitled to exercise.

Promising not to sue (settlement of a legal claim) will act as a legal detriment, as long as the promising party has and HONEST good faith belief in the validity of the claim.

Question 3

INVALID CONSIDERATION

Answer 3

Gift Promises are NOT consideration
Conditional Gifts are NOT consideration
A preexisting legal duty is NOT consideration
Past Consideration is NOT consideration
A Pretense of consideration or SHAM consideration is NOT consideration
An ILLUSORY PROMISE is NOT consideration (promisor fails to clearly commit to the deal)