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Unformatted text preview: Chapter 12 Notes- Just because a promise has been made doesnt mean that the promise will or will be enforced. There needs to be a reason to enforce. Thats where consideration comes in. Elements of Consideration Consideration is broken into 2 parts. 1) Legal Value (something of legally sufficient value must be given in exchange for promise) a. A promise to do something b. Performance of an action that is otherwise not obligated to undertake c. Forbearance- refraining from action that one has legal right to undertake 2) Bargained-for-Exchange a. There must be a bargain struck between the promisor and the promise. The promise given by the promisor must induce the promise to offer a return promise. Adequacy of Consideration-Adequacy of consideration- Basically how fair the bargain is. (how much consideration is given)-Courts typically will not consider adequacy (people cant just sue if they enter into an unwise contract)-However, if the amount or value of the consideration is grossly unequal, then the courts may...
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- Spring '08
- Business Law