the inducement, price, or promise that causes a person to enter into a contract and
Consideration
forms the basis for the parties' exchange
1. Value - requires legal benefit to promisor or detriment to the promisee.
2 basic elements of consideration 2. Bargained for Exchange: "If you do this, I'll do that" -The parties must bargain for the
consideration
any action that a party was not legally required to take in the first place (Example:
Act
doing a job, delivering an item)
Forbearance Opposite of an act, refraining from doing something that one has a legal right to do
3 exceptions to the basic rule of illusory promises, preexisting duties, past consideration
consideration
is not consideration, a promise that is unenforceable due to indefiniteness or lack of
Illusory Promises
mutuality, where only one side is bound to perform
If someone provides a service that she is already obligated to do, that act does not
Pre-existing Duties
count as consideration (Ex: life guard who saves people)
Past Consideration A completed act cannot be the basis for consideration
something that a person is not legally bound to do but that he or she may feel bound
Moral Consideration to do because of love, friendship, honor, sympathy, conscience, or other reason.
Enforcing pledges and promises
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