Chapter 12 Bsb506

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B506 CHAPTER 12 Consideration Consideration is something exchanged for something else. Often, the concept of consideration is broken into the two elements that are discussed above and in the text. These elements are also dis¬cussed in the Restatement (Second) of Contracts, Section 71. The fol¬lowing is the text of that sec¬tion with selected Comments and Illustrations. § 71. Requirement of Exchange; Types of Exchange (1) To constitute consideration, a performance or a return promise must be bargained for. (2) A performance or return promise is bargained for if it is sought by the promisor in exchange for his promise and is given by the promisee in exchange for that promise. (3) The performance may consist of (a) an act…show more content…
Story, Sr., promised to pay Story II $5,000 if he would refrain from drinking, using tobacco, swearing, and playing cards or bil¬liards for money until he was twenty-one. Story II agreed, performed his part of the bar¬gain, and consented for the money to remain with Story, Sr., accruing interest. After Story, Sr.’s death twelve years later, Sidway, the executor of the es¬tate, did not want to pay the $5,000 (with interest) to Hamer, a third party to whom Story II had transferred his rights in the money. Sidway claimed that there had been no valid consideration for the prom¬ise. From a judg¬ment for Sidway, Hamer…show more content…
Adequacy of Consideration Adequacy of consideration refers to the fairness of the bargain. Ordinarily, courts will not evaluate the adequacy of consideration, unless it is so grossly inadequate as to “shock the conscience” of the court—if, in terms of its amount or worth, it indicates fraud, duress, or undue influence. The con¬tract may be declared unconscionable. A BAD BARGAIN is not failure of consideration Court do not consider the adequacy of the consideration given for the promise – the fact that the consideration supplied by one party is slight when compared with the burden undertaken by the other is immaterial  as long as 1. the parties freely agreed to the exchange III. Agreements That Lack Consideration A. PREEXISTING DUTY Under most circumstances, a promise to do what one already has a legal duty to do is not legally suffi¬cient consideration. There are exceptions— A promise to perform an existing obligation is not consideration because it is neither a legal detriment or a legal benefit 1. Unforeseen

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