September 29 Briefs and Notes

September 29 Briefs and Notes - Chapter 2 Consideration I...

Info iconThis preview shows pages 1–3. Sign up to view the full content.

View Full Document Right Arrow Icon
September 29, 2008 Chapter 2 Consideration I. The Basic Concept A. Definition O + A + C = K The C stands for these three things: o Consideration: Something for Something (quid pro quo) The offer will always be a promise looking for an act or a promise that is bargained for, looking for something in return. C is 1) explicitly bargained for (get something for the promise) benefit to the promisor or 2) explicitly bargained for detriment (value) to the promissee. IS THERE CONSIDERATION? Identify the promise to the enforced? What act or promise is sought in return? Was the act or promise bargained for? Does the act or promise have value? o Promissory Estoppel o Moral Obligation Problem 37 : Just b and c. 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 promise in exchange for that promise. 3. The performance may consist of: a. An act other than a promise b. A forbearance- do not do something which you had a legal right to do c. The creation, modification, or destruction of a legal relation. 4. The performance or return promise may be given to the promisor or to some other person. It may be given by the promise or by some other person. Hamer v. Sidway Court of Appeals of NY, 1891 Law: Valuable consideration defined – “may consist either in some right, interest, profit, or benefit accruing to the one party, or some forbearance, detriment, loss, or responsibility given, suffered, or undertaken by the other.” Facts: William E. Story, Sr. (uncle) promised his nephew William E. Story, 2nd that he would pay him $5000 if he refrained from drinking, using tobacco, swearing, and playing cards or billiards for money until he became 21 years of age. The nephew agreed and fully performed. Acquired it through assignment from William E. Story, 2nd and presented a claim of $5000 to ?. The claim was rejected by the executor on the grounds that there was no binding contract due to the lack of consideration. William, Jr. was only 8 years old at the time the promise was made. P: By the uncle to give $5000 to the nephew A or P: Forbearance, not smoking, drinking, swearing and playing cards or billiards Bargained: Yes, promise that he would not do those things Value: Yes, giving up a legal right has value
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Reasoning: This case fit a textbook definition of consideration and thus was entitled to the $5000 as promised and the contract was enforceable. Issue: Does forbearance of a right constitute valid consideration? Benefit/Detriment test is used at this point in time (no longer a valid test) – you do not have to have both, one or the other is sufficient. William, Jr. made a promise that was a legal detriment, and while the Uncle did not specifically/monetarily benefit you can argue that he at least had a psychological benefit. Will something occur b/c of the promise?
Background image of page 2
Image of page 3
This is the end of the preview. Sign up to access the rest of the document.

This note was uploaded on 10/20/2009 for the course CONTRACTS 108 taught by Professor Cox during the Fall '08 term at McMaster University.

Page1 / 6

September 29 Briefs and Notes - Chapter 2 Consideration I...

This preview shows document pages 1 - 3. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online