Consideration

Question 1

What is consideration

Answer 1

Bargained for exchange btwn parties for something of legal value

Question 2

A legal value is present if

Answer 2

the promisee has incurred a detriment

Question 3

Is PELD consideration?

Answer 3

NO, unless exception applies

Question 4

list (6)

Exceptions to PELD

Answer 4

1. New or different consideration
2. Promise to ratify a voidable obligation ^{(ie promise to ratify a minor’s K after reaching majority)}
3. PELD is owed to a third party instead of promisor
4. Honest dispute as to duty
5. Unforeseen circumstances that can discharge party -OR-
6. Modern view of modification

Question 5

list (2)

What is modern view on K modification as it relates to PELD

Answer 5

1. modification due to unanticipated circumstances when K made -AND-
2. modification fair + equitable

Question 6

What is an illusory K

Answer 6

When only one party is bound to perform - K is unenforceable

Question 7

A K is not illusory if

Answer 7

1. at least one alternative involves legal detriment and the power to choose the alternative rests with the promisee or third party -AND-
2. valuable alternative (one that involves legal detriment) is selected