| A | B |
|---|
| What is a Contract? | Promise + Consideration |
| What is Consideration? | a performance or return promise that is bargained for. |
| What may performance consist of? | an act other than a promise, a forbearance, the creation, modification, or destruction ofa legal relation |
| What does Hamer v Sidway show? | Forebearance is consideration. |
| What does Kirksey v Kirksey show? | Mere gratuity is not binding. Offer was a gift! |
| What does Dougherty show? | Past consideration is not consideration. For "value received" will not work as consideration. |
| General rule for sufficiency of exchange | the value of the consideration does not matter. "In ascertaining the presence of consideration, the courts will not weigh the consideration, or insist on a fair or even exchange." |
| What does Batsakis show? | Mere inadequacy of consideration will not void a contract. |
| What does Plowman v Indian Ref. Co. Show? | Past consideration is not consideration. Employees only had to come into the office to pick up paycheck. This is basically a gift. |
| When to question consideration? | Fraud, unconsionability, nominal consideration ($1.00), sham consideration. |
| What is the pre-existing duty rule? | performance or the promise to perform a pre-existing duty does not constitute consideration. |
| What does Levine v Blumenthal show? | the promise to do wh the promisor is already legally bound to do is unreal consideration. (Ten. asks for rent reduction from landlrd. who agrees. Ten. does not pay last month rent. LLord sues for full contract amount. |
| What does Alaska Packers show? | promise to pay to do what was already under contract to do is not consideration. No Holdups!! Fishermen cannont hold up the company for a new contract. |
| Restatement 89- Modification of Executory Contract | A promise modifying a duty under a contract not fully performed on either side is binding a. if fair and equitable/not anticipated. or b. to the extent provided by statute, or c. the extent that justice requires enforcement in view of change of position in reliance on the promise. |
| What does Angel v Murray show? | A promise modifying a duty under a contract not fully performed on either side is binding if the modification is fair and equitable in view of circumstances not anticipated. (Garbage collection) |
| Restatement 74-Settlement of Claims | Forbearance to assert or the surrender of a claim or defense which proves t be invalid is not consideration unless: a. the claim or defense is in fact doubtful b. the forbearing party or surrend. party believes that the claim or defense may be determ. valid 2. the execut. of a writt. instrum. surrenduring a claim or defense by one who is under no duty to do so is consideration if it was bargained for. |
| What does Fiege v Boehm show? | forbearance from asserting a good faith claim can be sufficient to constitute consideration. (Couple had sex, he thinks father, asks for no bastardy charges, she agrees, he is not father, still owes money.) |
| What does Greene Show? | Past consideration cannot be used to enforce a written contract. Promise to pay a woman on account of cohabitation which has stopped is void. |
| What does in the interest of Jane Doe show? | settlement of claims in good faith is a settlement agreement. An agreement to terminate, by means of mutual concessions, a claim that is disputed is enforcebale. |
