BLAW Ch 12 - CONSIDERATION Consideration Value given in...

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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 the promisor sought it in exchange for the promisor’s promise and the promisee gave it in exchange for the promisor’s promise. Courts will generally not inquire into the adequacy of the consideration, as long as the Ch. 12: Contracts: Consideration - No. 1 Clarkson et al.’s Business Law (11th ed.)
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promisor bargained for it – although some courts will make an exception for grossly inadequate consideration. Ch. 12: Contracts: Consideration - No. 2 Clarkson et al.’s Business Law (11th ed.)
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INSUFFICIENT CONSIDERATION Preexisting 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.
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