Quiz 4 Study Guide (Consideration and Equity) - 3-13-08

Quiz 4 Study Guide (Consideration and Equity) - 3-13-08 -...

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Consideration & Equity Chapter (Pages 132 to 143) Study Guide for Quiz #4 on 3/13/08 Consideration Something of legal value given in exchange for a promise. Consideration consists of two elements: legal value and bargained-for exchange. Legal Value Support for a contract when either (1) the promisee suffers a legal detriment (2) the promisor receives a legal benefit. Bargined-for exchange Exchange that parties engage in that leads to an enforceable contract Gift promise An unenforceable promise because it lacks consideration Illegal Consideration A promise to refrain from doing an illegal act. Such a promise will not support a contract. Illusory Promise A contract into which both parties enter but one or both of the parties can choose not to perform their contractual obligations. Thus the contract lacks consideration. Moral Obligation An auction in which the seller retains the right to refuse the highest bid and withdraw the goods from sale. Preexisting Duty
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This test prep was uploaded on 03/30/2008 for the course BLAW 060 taught by Professor Walker during the Spring '08 term at Drake University .

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Quiz 4 Study Guide (Consideration and Equity) - 3-13-08 -...

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