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What is Sham/nominal consideration?

A promise made by one party that isn't intended to be performed


As an example of sham consideration?

Want to give your sister your car, so you sell it for one dollar (Consideration in name only)


Does nominal consideration make a conditional donative promise enforceable?

No, even though it looks like a bargain, fulfilling the condition is not the price of the promisor's performance


How do you know if I conditional promise is donative?

- donative: parties think the condition is just part of making the gift
- bargain: parties think the condition is the price of the promise


If you call your friend and tell him you have a gift for him, and he must come over right away to get it, is that enforceable?

No, because coming over was not the price of the gift, it was just a way to make it happen


What can you use to prove there wasn't a contract in donative promise situations?

Parol evidence


What are the two views about whether donative promises are enforceable?

- majority: consideration has not been paid
- Minority: consideration present


If you surrender a valid claim, can that be consideration?

Yes, If it is bargained for


If you are trying to surrender a claim that you know is unfounded as consideration, what is your duty?

Not to assert it


Contracts entered under threat will be set aside for what?



You surrender an invalid claim as consideration, but are unsure about its validity, is that good consideration?

Yes, if asserted in good faith and if a reasonable person would believe it was well-founded


Under the UCC, does a promise to pay a pre-existing debt need new consideration?



What are two different views about promises to pay for benefits that are already received when there was no expectation of payment at the time?

- Majority: enforceable, and so are promises to pay for services rendered as favours. Liable to pay reasonable value
- Minority: promise is a rebuttable evidentiary admission of value of services


Forbearance to sue is valid consideration if the claimant honestly believes what?

That he has a valid claim, regardless of how reasonable that belief is


What is the best way for a donative gift to be enforced?

Promissory estoppel, after the promise was injuriously relied on


If your mom says she'll pay for your education, so you quit your job, and then she doesn't pay, what happens?

Court probably give damages for quitting job, not for full cost of education (based on promissory estoppel)


What is the extent that promissory estoppel will enforce a promise?

To the extent of the reliance


Promissory estoppel says that reliance is a substitute for what?



Your aunt promises to reimburse you $1000 for opera tix you will use yourself, and you buy the tickets for $500, and she refuses to pay, how much will promissory estoppel make her pay?

- Williston's view: titled the full extent of promised sum ($1000)
- R2: $500, which is the extent of reliance


Promissory estoppel can save agreements that fail for enforceability, like what?

Indefiniteness, not complying with SOF, noncompliance with parole evidence rule, etc.