Consideration

Question 1

Consideration is…

Answer 1

a bargained-for exchange between parties for legal value.

Question 2

The modern view permits common law contract modification without consideration if:

Answer 2

(1) the modification is due to circumstances that were unanticipated by the parties when the contract was made; and
(2) it is fair and equitable.

Question 3

Under the UCC, consideration isn’t necessary to modify a contract, all the parties need are…

Answer 3

good faith promises of new and different terms.

Question 4

A promise is enforceable without consideration because it is necessary to prevent injustice if:

Answer 4

(1) the promisor should reasonably expect to induce action or forbearance, and;
(2) such action or forbearance is in fact induced.