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Chapter 12 Consideration    See Separate Lecture Outline System I NTRODUCTION Your students should now understand that not every promise is binding.  Continuing the discussion of when a promise is binding, this chapter focuses on consideration. The first concept students should understand about consideration is that it means something of  legal value.  They may find it difficult to understand that a promise has legal value as consideration, distinct from the  economic  value (if any) of the thing promised.  The thing of legal value may be goods, money, performance, or a return promise.  If it is performance, that performance may be an act (other than a promise), a forbearance (refraining from doing something that one has a legal right to do), or the creation, modification, or destruction of a legal relation. The second concept that should be explained is that consideration must be bargained for.  Performance or a promise is bargained for if the promisor seeks it in exchange for his or her promise and the promisee gives it in exchange for that promise.  It is not enough that the promise induces the conduct of the promisee or that the conduct of the promisee induces the making of the promise.  They must induce each other, or the bargained- for exchange element does not exist. 233
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234           INSTRUCTOR’S MANUAL TO ACCOMPANY  BUSINESS LAW,  ELEVENTH EDITION A DDITIONAL  R ESOURCES A UDIO  & V IDEO  S UPPLEMENTS The following  audio and video supplements  relate to topics discussed in this chapter— PowerPoint Slides To highlight some of this chapter’s key points, you might use the Lecture Review PowerPoint slides compiled for Chapter 12. A DDITIONAL  B ACKGROUND Restatement (Second) of Contracts, Section 71 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 following is the text of that section 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.
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  • Business Law, ........., Business  Law

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