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Unformatted text preview: d that since Blackmon offered the nickname without expectation of compensation, Iverson wasn’t unjustly enriched by profiting from the marketing of “The Answer.”
A promise to provide something in return for what another person has already done for you is not
consideration for a contractual obligation. Contract promises are exchanges about future performance
by both sides, not thank-you promises for benefits already received.
Source: Blackmon v. Iverson, 324 F. Supp. 2d 602 (E.D. Pa. 2003) http://scholar.google.com/scholar_case?case=16577460154069
688056&hl=en&as_sdt=2&as_vis=1&oi=scholarr Preexisting Duty
It is not consideration to do what one is already obligated to do. For example:
Example 4.27. Mara, a police officer, gives information that leads to the
arrest of a bank robber. Mara attempts to claim the $10,000 reward the bank
has offered. rog80328_04_c04_062-088.indd 80 10/26/12 5:42 PM Section 4.4 Consideration CHAPTER 4 Example 4.28. Al, a company’s accountant, agrees to recheck the company’s tax returns in exchange for a percentage of the tax savings he can realize for the company.
Neither Mara nor Al has given consideration to make a contract. They are already obligated to perform the duties for which they seek additional compensation: the police officer has a duty to the public to catch criminals, and the accountant has a preexisting duty to
find the largest legal refund he can for his employer. Mara and Al are not giving anything
new or different than they are already required to give.
Suppose Cathy contracts to build a house for Rita for $100,000. Halfway through the project, Cathy decides she isn’t going to make enough profit and she refuses to finish unless
Rita promises to pay her an additional $15,000. Rita, facing a half-done house, reluctantly
agrees. Cathy finishes the house. Must Rita pay her? Generally the answer is no, because
Cathy gave no new consideration. But if in exchange for Rita’s promise, Cathy in turn
promises to install a beautiful door knocker (worth an entire $25) that was not in the contract, that is consideration and Rita is bou...
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- Spring '10
- Business Law