Flashcards in Page 15 Deck (17):
What are the elements of consideration?
- promisee must suffer legal detriment
- detriment must induce the promise and promise must induce the detriment
- bargained for must be objectively understood
Can detriment be given by other people than the promisor?
Yes. It doesn't matter who the consideration is going from or to if it is bargained for and given in exchange for a promise
If you sign a contract but don't read the contract, is consideration present?
Yes, it doesn't matter if you didn't read it, because the terms objectively have the appearance of a bargained for exchange
Does a promise for a past event's occurrence constitute consideration?
No, because it has already happened
If you finish a project with someone and then promise to give them extra money for doing it, is that enforceable?
No, the work was already performed, so there's no consideration
What are the two exceptions to a past event not being consideration?
- if a debtor revives an old debt
- if promisor requests the performance
If a debt is barred from recovery by SOL, but the debtor revives it in writing, is that enforceable?
Yes, even if no new consideration is given, because it is a new promise
If a debtor revives an old debt in writing, what is he obligated to?
Only pay the amount he agrees to, even if it is less than the original debt, and only abide by terms he sets (conditions)
If a promisor requested a performance, and it was performed with an expectation of payment, then is a later promise to pay enforceable?
Are gratuitous promises to make gifts enforceable?
No, because they lack consideration
What is the only way you can make a gratuitous promise to make a gift enforceable?
Promissory estoppel Will enforce a gratuitous promise if reliance was reasonably expected by the other party (promise will only be enforced to the extent of reliance)
If there are many motivations for a promise, does detriment have to be the predominant one?
No, it just has to be enough so that it is actually bargained for
If you promise to sell your friend a car worth $5000 for only $1000, is that consideration?
Yes, as long as there is an element of exchange, even if the primary motive was friendship
If both parties know that consideration is just a pretense, is the promise enforcible?
If the benefit of giving a gift is just the pleasure of altruism, is that enforceable?
What are the different ways that promises under seal are dealt with?
- CL: any promise under seal is enforceable
- moderately: many states say that a seal only raises the presumption of consideration