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7 Cards in this Set
- Front
- Back
Rule for Consideration
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Consideration requires bargained-for-exchange for something of legal value.
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Bargained-for
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An offer is bargained-for when the offeree could reasonably believe that the intent of the offeror was to induce the action.
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These two things are not bargains
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1. Gifts
2. Past Consideration |
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Legal Detriment
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legal detriment results when the promisee does or refrains from doing something he or she is under no legal obligation to do but has the legal right to do.
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(4) Factors involving legal detriment:
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1. Pre-existing duty rule- no detriment
2. Contract modification needs some kind of new consideration 3. UCC exception--NO consideration required to modify contract for sale of goods, only good faith 4. Compromise of Claim (Valid or Invalid) |
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Rule for Promissory Estoppel
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Promissory Estoppel, relied-upon legal detriment, will substitute as an element of contract formation in cases where consideration is absent.
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(2) Factors involving Promissory Estoppel
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1. Legal Detriment- same as consideration
2. Relied-upon-- Promisor should reasonably expect action or forbearance and such action or forbearance is in fact induced (charitable contributions). |