ConsiderationCHAPTER 9-1 QUIZ REVIEW

What is consideration?

Each side gains somethingFair but not necessarily equalChange in your legal position as a result

of the contract (Legal value)Must be based on genuine assent

(Entering under free will)

What can be traded?

ActPromiseForbearance

ACT

Buying something at a grocery store or going to work then getting paid

PROMISE

Agreeing to paint a home in exchange for getting paid for services

FORBEARANCE

Agreeing not to do something you have a legal right to do (Not paying a loan back temporarily)

ELEMENTS OF CONSIDERATIONGiveTradeLegal Value

GIVE

The actual promise made to the other side- “I’ll give you $50 for your lawnmower”

TRADE

Proof you gave the other party what you agreed (You get the lawnmower, they got the $50)

LEGAL VALUE

What you received has value in the eyes of the law (Fair value)

WHAT CAN BE TRADEDA benefit for a benefit (Most

common)A detriment for a detriment

(Least common)A benefit for a detriment

BENEFIT

Something you gainBuying a bag of chips at a

grocery store or buying a carSomething you did not have

before the purchase

DETRIMENT

A responsibility you take on that you would NOT have taken on if not for the promise made to you to get into an agreement

GIFT GIVING

Does not contain consideration

Donor- gift giverDonee- Receiver of gift

Promises

Some promises are binding, some are not

Binding if there is a detrimentPromisor- Making the promisePromisee- Receiving the promise

SMALL AMOUNT OF CONSIDERATIONToken or NominalGiving someone $1.00 for a car so its not a gift, but rather a contract

FINALLY

Courts do NOT allow fights over value of consideration

Courts look at adequacy or fairness, not equal

QUESTIONS??