Formation 6

Question 1

Defense to consider for excessively one-sided bargain (consideration value)

Answer 1

Unconscionability

Question 2

when can surrendering an invalid claim count as consideration (2)

Answer 2

if:
1. the claim is in fact doubtful, OR
2. the surrendering party (regardless of other party) believes the claim is well-founded

Question 3

when consideration does not exist (3)

Answer 3

1. illusory promise
2. gratuitous promise
3. past/moral consideration

Question 4

illusory promise

Answer 4

one party is bound to perform, leaves performance to the discretion of other party, e.g., “all the widgets I want (not “I require”), “all you want to sell me” (not “you produce”)

Question 5

gratuitous promise

Answer 5

a promise to make a gift and no return consideration

Question 6

past/moral consideration

Answer 6

promise in exchange for something already given or performed

Question 7

under what condition is there an exception to the past/moral consideration non-consideration

Answer 7

new promise to pay anyway

Question 8

two cases of exception to past/moral consideration non-consideration

Answer 8

1. statute of limitations: written promise to pay a debt barred by limitations (new promise to pay debt may be enforceable)
2. bankruptcy: written promise to pay a debt discharged by bankruptcy

Question 9

what are substitutes/alternatives for consideration used for

Answer 9

used to enforce a promise in the absence of consideration

Question 10

substitutes/alternatives for consideration (3)

Answer 10

1. promissory estoppel
2. quasi-K
3. implied best efforts