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9 Cards in this Set
- Front
- Back
Consideration
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A bargain for exchange of legal value
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Bargains:
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promise for promise exchange.
Promise for performance (act/forbearance) exchange |
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No bargain/consideration if
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1) gift
2) past consideration 3) illusory promise (empty promise)/ watch for: satisfaction clauses. Output/requirement contracts. Exclusive agency contracts. 4) Modification: must have separate consideration to be binding |
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Pre existing legal duty rule
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no consideration given if a party attempts to bargain for more money to do something she already has a legal obligation to do.
Exception: new or different consideration offered./ honest dispute over duty/ unforeseen circumstances encountered |
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Legal value element
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adequacy of consideration (court will not inquire) v. nominal consideration (dollar for a mortgage, most likely construed as a gift)
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Substitution for consideration, must ask "if there's no consideration, is there an alternative ground to enforce the promise?"/ Promissory estoppel or detrimental reliance
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Elements: 1) Promise. 2) promisor should reasonably expect promise to induce action or forbearance. 3) action or forbearance is induced in fact. 4) Justice requires enforcement
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Substitution for consideration, must ask "if there's no consideration, is there an alternative ground to enforce the promise?"/ Modification under the UCC
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1) requires only good faith, no consideration (sale of goods setting).
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Substitution for consideration, must ask "if there's no consideration, is there an alternative ground to enforce the promise?"/ Promises to pay legal obligation barred by law
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New promise enforceable if in writing or part performance
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Restitution claim
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Back to where you were before.
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