Consideration– exchange of benefits and detriments by the parties to an agreement.
benefit– something that a party was not previously entitled to recieve.
detriment– any loss suffered.
I. Types of detriments:
- Giving up something you have a legal right to posses
- A promise to do something
- forbearance– not doing something that you have to legal right to do
II. Agreements without consideration
- Promise to make a gift (can not be taken back)
- Promise to obey the law
- Pre-existing duty (Dog Catcher)
III. Past Consideration – can not ask for consideration of things that have occured in the past (lawyers, services)
- promise to attend a social event
- there is no valid consideration
IV. Adequacy of Consideration (fair, enough, fulfills)
- generally courts do not get involved in disputes about the value of consideration
- Unconscionable– so inadequate that it might be considered fraud or deceit
V. Promises that are enforceable that lack consideration
- Pledges and subscriptions
- Promissory Estoppel
Promise to make a gift-
- gift- something given freely, for no consideration
- cannot force its return
- promise to make a gift is not enforceable and does not constitute a contract
Promise to obey the law-
- everyone is obligated to obey the law, a promise to do so is no detriment
- If a person is already under a legal duty to do something, a promise to do that same thing does not furnish consideration
- giving or exchanging benefits and detriments by the parties must take place when the contract is made.
- illusory- have a false appearance
Promise to Attend a Social Engagement-