Consideration

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CHAPTER 12
Consideration
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CONSIDERATION

• Consideration is a required element of every
  contract

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CONSIDERATION

• The law does not hold us accountable for every
  promise we make. The doctrine of consideration
  determines which promises a court must enforce.

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CONSIDERATION

• Consideration can be anything that someone might
  want to bargain for.

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CONSIDERATION

• Consideration means that there must be bargaining
  that leads to an exchange between the parties.
• A bargain and exchange must take place between
  the parties.

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THE PARTIES

• A promisor is the person who makes the promise.
• The promisee, is the person to whom the promise
  is made.

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BARGAINING

• Bargaining is obligating yourself in order to
  induce the other side to agree.

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A BARGAIN AND AN EXCHANGE

• The thing bargained for can be
• another promise or action.
• a benefit to the promisor or a detriment to the
  promisee.
• a promise to do something or a promise to refrain
  from doing something.

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ADEQUACY OF CONSIDERATION

• Courts seldom inquire into the adequacy of
  consideration.
• A previously paid benefit is generally not
  consideration because it was not meant to induce
  the other side to agree.

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MUTUALITY OF OBLIGATIONS

• Illusory Promise
• Requirements and Output Contracts

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PROMISSORY ESTOPPEL

• Under the doctrine of promissory estoppel, even
  if there is no contract a promise may be
  enforceable.

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PREEXISTING DUTY

• A promise to which the promisor is already
  obligated is not consideration.

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SETTLEMENT OF DEBTS

• A liquidated debt is one in which there is no
  dispute about the amount owed.

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SETTLEMENT OF DEBTS

• A debt is unliquidated if
• (1) the parties dispute whether any money is
  owed, or
• (2) the parties agree that some money is owed but
  dispute how much.

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PAYMENT BY CHECK

• Common law
• Exceptions