ch11

West's Business Law with Online Research Guide, 9th Edition

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CONSIDERATION Consideration : Value given in return for a promise. Consideration must be (1) legally sufficient and (2) bargained for by the party receiving it. Legally sufficient consideration may take the form of: (1) promising to do something that the promisee has no prior legal duty to do ( e.g. , promising to pay money for the promisor’s goods); (2) performing an action that the promisee is not otherwise obligated to undertake ( e.g. , painting the promisor’s house); or (3) refraining from exercising a legal right that the promisee is otherwise entitled to exercise ( e.g. , dismissing a viable lawsuit against the promisor). Consideration is bargained for if it is sought by the promisor in exchange for the promisor’s promise and given by the promisee in exchange for the promisor’s promise. Ch. 11: Contracts: Consideration - No. 1 West’s Business Law (9th ed.)
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Courts will generally not inquire into the adequacy of the consideration, as long as the promisor bargained for it. Ch. 11: Contracts: Consideration - No. 2 West’s Business Law (9th ed.)
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INADEQUATE CONSIDERATION Pre-Existing Legal Duty: A promise to do (or refrain from doing) what one already has a legal duty to do (or refrain from doing) generally does not constitute legally sufficient consideration. However, under the “unforeseen difficulties” doctrine, an existing contract may be modified to account for unforeseen difficulties that arise during the
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ch11 - CONSIDERATION Consideration: Value given in return...

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