BMGT380 Chapter 12: Consideration Questions And Answers Already Graded A+
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BMGT380 Chapter 12: Consideration
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BMGT380 Chapter 12: Consideration
Illusory Promises - ️️For a promise to serve as consideration in a bilateral contract,
the promisee must have promised to do, or to refrain from doing, something a the
promisor's request.
Illusory if it does not bind the promisee to do or refrain from doing anything such a
promise could not...
BMGT380 Chapter 12: Consideration
Illusory Promises - ✔️✔️For a promise to serve as consideration in a bilateral contract,
the promisee must have promised to do, or to refrain from doing, something a the
promisor's request.
Illusory if it does not bind the promisee to do or refrain from doing anything such a
promise could not serve as consideration.
What if a promisor did not ask for anything in exchange for making her promise or if the
promisor asked for something that does not have legal value? Is the promise
enforceable? (or promise was purely gratuitous) - ✔️✔️No, it is not enforceable against
her because it is not supported by consideration.
Consideration - ✔️✔️is the legal value, bargained for and given in exchange for an act
or a promise.
Promisee has to give something of legal value in exchange for the promise to be
enforce against the promiser.
The requirement of consideration means that a promisee must pay the price that the
promisor asked to gain the right to enforce the promisor's promise.
What does the consideration requirement do for the promiser? - ✔️✔️1. tended to limit
the scope of a promisor's liability for his promises by insulating him from liability for
gratuitous promises and by protecting him against liability for reliance on such promises.
2. The mechanical application of the requirement often produced unfair results.
An act or a promise can have legal value in one of two ways: - ✔️✔️1. If in exchange
for the promisor's promise, the promisee does, or agrees to do, something he had no
prior legal duty to do, something he had no prior legal duty to do, that provides legal
value.
2. If in exchange for the promisor's promise, the promisee refrains from doing, or agrees
not to do, something she has a legal right to do, that also provide legal value.
Hamer v. Sidway - ✔️✔️What constitutes**An uncle's promise to pay his nephew
$5,000 if he refrained from using tobacco, drinking, swearing, and playing cards or
billiards for money until his 21st birthday was held to be supported by consideration.
, Nephew did refrain even though he may have benefited from so refraining. he had legal
right to indulge in activities yet he refrained at his uncle's requests and in exchange for
his uncle's promise. This was all that was required for consideration.
Adequacy of Consideration - ✔️✔️As long as the promisee's act or promise satisfies
the legal value test the courts do not ask whether that act or promise was worth what
the promisor gave, or promised to give, in return for it.
Gross inadequacy of consideration is not by itself ordinarily a sufficient reason to set
aside a contract.
Bargained-For Exchange - ✔️✔️Fact that a promisee's act or promise provides legal
value is not, in itself a sufficient basis for finding that it amounted to consideration.
In addition, the promisee's act or promise must have been bargained for and given in
exchange for the promisor's promise.
Gottlieb v. Tropicana Hotel and Casino - ✔️✔️Illustrates the concept of bargained-for
legal value.
According to Tropicana, the participation in a promotion such as the million dollar wheel
cannot constitute consideration that would support the formation of an enforceable
contract.
Ms. Gottelieb provided adequate consideration to form a contract because:
She had to go to the casino, wait in line, present her diamond club card, permitted the
casino to conduct information, by participating in the game she was a part of the
entertainment. All of these determents to Ms. Gottlieb were the requested detriments to
the promisee induced by the promise of Tropicana to offer her a chance to win money.
Motives of Topicana were in nowise altruistic.
Forbearance - ✔️✔️Consideration must be of value (at least to the parties), and is
exchanged for the performance or promise of performance by the other party (such
performance itself is consideration). In a contract, one consideration (thing given) is
exchanged for another consideration. Not doing an act (forbearance) can be
consideration, such as "I will pay you $1,000 not to build a road next to my fence."
Fiege vs. Boehm - ✔️✔️HOLDING:
The promise of plaintiff that she would not institute bastardy proceedings against
defendant was sufficient consideration for his promise to pay for the child's support,
even though it was not certain whether defendant was the father.
RULES:
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