Explain Concept of Consideration in Terms of Contract Rules Flashcards

Can you describe the concept of Consideration in contract rules? These flashcards may be of assistance. In the legal system, the word Consideration in contract law refers to something of value given to someone in return for goods and services. A valid contract must incorporate Consideration for every party involved Consideration is the primary reason a party enters into a legal agreement. Read and study these flashcards to learn more.

79 cards   |   Total Attempts: 182
  

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Cards In This Set

Front Back
A donative promise (gift) is not a legally enforceable promise
Dougherty v. Salt (aunt promised nephew to give money but never really inteded to)
Nominal consideration (form) is not consideration (substance and form)
Schnell v. Nell (schnidley wiplash and his fake promise to give money to others after death of wife)
Past consideration is not consideration (can't bargain something that has already happened)
Schnell v. Nell (schnidley wiplash and his fake promise to give money to others after death of wife)
A moral consideration alone is not consideration
Schnell v. Nell (schnidley wiplash and his fake promise to give money to others after death of wife)
Consideration exists when a promisee agrees to forego a legal right or to limit his legal freedom
Hamer v. Sidway (uncle promises money for nephew to go SxE)
Promising to forego frivolous litigation is not consideration
Schnell v. Nell (schnidley wiplash and his fake promise to give money to others after death of wife)
To constitute consideration, a performance or a return promise must be bargained for
Restatement 71 (1)
A performance or return promise is bargained for if it is sought by the promisor in exchange for his promise and is given by the promisee in exchange for that promise.
Restatement 71 (2)
The performance (for consideration) may consist of (a) an act other than a promise, or (b) a forbearance, or (c) the creation, modification, or destruction of a legal relation
Restatement 71 (3)
Restatement 73
Performance of a legal duty owed to a promisor which is neither doubtful nor the subject of honest dispute is not consideration
Forbearance to assert or the surrender of a claim or defense which proves to be invalid is not consideration
Restatement 74
Both parties must provide consideration to be considered a contract however the consideration will be different for each party
Dougherty
Restatement 90
  1. (1)There must be a promise
  1. (2)The promisor should reasonably expect to induce action or forbearance
  2. (3)That the promise actually does induce action or forbearance (detrimental reliance)
  1. (4)Injustice can be avoided only by enforcement of the promise
of the promise. The remedy granted for breach may be limited as justice requires.
Feinberg v. Pfieffer (detrimentally relied on promise to retire)
Promissory estoppel is another way of satisfying consideration in that it makes a promise legally enforceable, but is NOT consideration
Hayes v. plantation
Promissory Estoppel FAIL; no inducement to retire