leb.pp.12 (Consideration)

leb.pp.12 (Consideration) - Chapter 12 Chapter...

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Unformatted text preview: Chapter 12 Chapter Consideration Definition of Consideration Definition 1. Value 1. Value a. Agree to do something not otherwise legally a. do obligated to do obligated * Fulfilling a pre-existing duty (doing pre-existing what you are already obligated to do) does NOT qualify as “value” NOT OR OR b. Agree to forebear from doing something that otherwise have legal right to do otherwise * Hamer v. Sidway Hamer CAN enforce uncle’s promise (nephew CAN provided consideration) Definition of Consideration Definition 2. In Exchange For 2. In a. Bargained for to seal the deal a. Bargained * Promise made in return for Promise something that has already taken place is NOT “bargained taken place NOT for” b. Promise induces value, and induces c. Value induces promise c. induces Examples Examples a. Is X’s promise enforceable? Yes, it is supported by consideration: Yes, (1) “Value” --- Y agrees to do something (1) --not otherwise legally obligated to do AND AND (2) “In Exchange For” --- Bargained for: (2) --installation induces payment and payment induces installation Examples Examples b. Alden v. Presley b. Alden P lloses: oses: No value provided in exchange for E’s promise, which is a “gift” (not binding on his estate) Examples Examples c. Harrington v. Taylor c. Harrington P loses: “Past Consideration” Rule loses: Rule D’s promise to pay was made in return for something that had already taken place (catching the ax) … promise did place not induce P to catch the ax not [But see Webb v. McGowin --Webb “Moral Consideration” Exception: Exception: Promise to compensate Good Samaritan enforceable] Examples Examples d. No knowledge of reward Promise to pay $500 not enforceable Promise not (no consideration for promise; promise did not induce return of dog) did e. Collins v. Gwinnett Bank & Trust Co. Collins No, Bank wins: X provided value in No, exchange for loan (not necessary that X benefit from loan) benefit Contract for Sale of Goods Contract Modification Modification Needs legitimate commercial reason (good faith modification) Special Situations Special Promissory Estoppel Promissory Travelers Indemnity Co. v. Holman P wins on promissory estoppel theory Special Situations Special Garwood Packaging v. Allen & Co. D’s statements of optimism and D’s determination are not “promises” that not sophisticated investment banker (P) sophisticated could reasonably rely on … summary jjudgment for D affirmed udgment Special Situations Special Promises to Charity I&I Holding Co. v. Ginsburg Yes, P wins Yes, Person who promises to donate to charity cannot revoke promise once charitable charity organization has relied to its detriment on promise, and its reliance is reasonable and foreseeable foreseeable ...
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