something of legal value offered in bargain for a promise
consideration
(1) whether the parties bargained for the consideration
(2) whether the consideration created a legal detriment to the party providing it
courts are concerned with when dealing with consideration
the value of consideration is extremely small
peppercorn
Two common types of consideration are
(1) something of value
(2) a return promise
a gift that can be accepted or demanded only after a certain condition has been met
Conditional gift
consideration that would be legally sufficient to form a contract, but the consideration was given before the offer was made
Past consideration
a promise that appears to be consideration but is not, as the promise itself does not legally obligate itself to a specific detriment
Illusory promise
a duty that one already legally owes
preexisting duty
occurs when both parties agree to return to their pre-contracting positions and suspend performance under their previous contract through a new contract
mutual rescission
occurs when a party agrees to discharge their duties under a previous contract by substituting a new contract that creates new obligations on behalf of the parties.
novation
occurs when parties to a contract agree to change the obligations required under their contract
Contract modification
an agreement where the parties agree to satisfy a preexisting duty by imposing a new contractual duty
accord and satisfaction
generally requires (1) a writing to evince the new agreement, (2) new consideration, and (3) the parties to negotiate in good faith
release
allows a contract to be modified from its original terms without requiring additional consideration, as long as the unforeseen circumstance was not foreseeable
doctrine of unforeseen circumstances
another example of an agreement that is enforceable even though it lacks consideration
Promissory estoppel
- A person makes a clear and definite promise.
- The person receiving the promise justifiably relies on the promise.
- The person relying on the promise suffers a detriment.
- Justice is served by the enforcement of the promise that was not supported by consideration.
Promissory estoppel requirements
is not legally required to be paid is often enforceable
by courts under contract law
A promise to pay for a debt
someone who has not reached the age of majority
minor
to declare the contract will not be honored or abided by
disaffirm a contract
the minor chooses not to disaffirm the contract but instead gives it legal force
Ratification
restoring the other party to their original position
Restitution
an item necessary to sustain a minor’s existence
necessary
the legal process by which a minor becomes independent of their parents under the law, thereby losing their status as a minor
Emancipation
understand the consequences of one’s actions
lucid
