Answer to Contract Law Chapter12
153
Chapter 12
CONSIDERATION
A. Legal Sufficiency 1. Adequacy 2. Unilateral Contracts 3. Bilateral Contracts 4. Illusory Promises a. Output and Requirement Contracts b. Exclusive Dealing Contracts c. Conditional Promises 5. Pre-existing Obligation a. Modification of a Pre-existing Contract b. Substituted Contracts c. Settlement of a Undisputed Debt d. Settlement of an Disputed Debt B. Bargained-For-Exchange 1. Past Consideration 2. Third Parties C. Contracts without Consideration 1. Promises to Perform Prior Unenforceable Obligations a. Promise to Pay Debt Barred by the Statute of Limitations b. Promise to Pay Debt Discharged in Bankruptcy c. Voidable Promises d. Moral Obligation 2. Promissory Estoppel 3. Contracts under Seal 4. Promises Made Enforceable by Statute a. Contract Modifications b. Renunciations c. Firm Offers
Cases in This Chapter
Pearsall v. Alexander Denney v. Reppert New England Rock Services, Inc. v. Empire Paving, Co. DiLorenzo v. Valve and Primer Corporation
*** Chapter Objective ***
Define consideration and explain what is meant by legal sufficiency.
A. LEGAL SUFFICIENCY
Consideration is the legal value which supports a promise in a contract relationship; it is the inducement to make a contract enforceable. To be legally sufficient, the consideration for the promise must be either a legal detriment to the promisee or a legal benefit to the promisor. In other words, the promisor must receive something of legal value or the promisee must give up something of legal value in return for the promise. Legal detriment does not mean harm, but rather something which the promisee was previously under no legal obligation to do or refrain from doing. Legal benefit means the obtaining by the promisor of that which he had no prior legal right to obtain.
CASE
Pearsall v. Alexander
Case Questions 1. Would the results be the same if the Lottery ticket was worth $20.00? $2,000,000? 2. How can the "course of conduct" test be applied to this
Chapter 12
CONSIDERATION
A. Legal Sufficiency 1. Adequacy 2. Unilateral Contracts 3. Bilateral Contracts 4. Illusory Promises a. Output and Requirement Contracts b. Exclusive Dealing Contracts c. Conditional Promises 5. Pre-existing Obligation a. Modification of a Pre-existing Contract b. Substituted Contracts c. Settlement of a Undisputed Debt d. Settlement of an Disputed Debt B. Bargained-For-Exchange 1. Past Consideration 2. Third Parties C. Contracts without Consideration 1. Promises to Perform Prior Unenforceable Obligations a. Promise to Pay Debt Barred by the Statute of Limitations b. Promise to Pay Debt Discharged in Bankruptcy c. Voidable Promises d. Moral Obligation 2. Promissory Estoppel 3. Contracts under Seal 4. Promises Made Enforceable by Statute a. Contract Modifications b. Renunciations c. Firm Offers
Cases in This Chapter
Pearsall v. Alexander Denney v. Reppert New England Rock Services, Inc. v. Empire Paving, Co. DiLorenzo v. Valve and Primer Corporation
*** Chapter Objective ***
Define consideration and explain what is meant by legal sufficiency.
A. LEGAL SUFFICIENCY
Consideration is the legal value which supports a promise in a contract relationship; it is the inducement to make a contract enforceable. To be legally sufficient, the consideration for the promise must be either a legal detriment to the promisee or a legal benefit to the promisor. In other words, the promisor must receive something of legal value or the promisee must give up something of legal value in return for the promise. Legal detriment does not mean harm, but rather something which the promisee was previously under no legal obligation to do or refrain from doing. Legal benefit means the obtaining by the promisor of that which he had no prior legal right to obtain.
CASE
Pearsall v. Alexander
Case Questions 1. Would the results be the same if the Lottery ticket was worth $20.00? $2,000,000? 2. How can the "course of conduct" test be applied to this