Law-12 - Chapter 12 Consideration Basic Requirements of a...

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Chapter 12 Consideration
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Basic Requirements of a Contract Agreement Consideration Contractual Capacity Legality
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Consideration In order for a contract to be legally enforceable, it must be supported by consideration. That is, if a contract is not supported by consideration, it cannot be enforced. Keep in mind that lack of consideration is not a theory of recovery; rather, it is a defense to enforcement. Consideration means that each party must give something of legal value under the contract terms.
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Consideration What has legal value? Money Goods Performance of a legal act Forbearance from a legal act Creation, modification, or destruction of a legal relation
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Sufficiency v. Adequacy Your book states that consideration is sufficient if it is legally beneficial to the promisor or legally detrimental to the promisee. More accurately, each party must give, perform, or promise to give or perform, something that has legal value. Distinguish between the sufficiency and adequacy of consideration. Consideration is sufficient if it meets the above test. Consideration is adequate if the deal is fair. With few exceptions, courts will not question the adequacy of consideration. 12.1
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Case Example Jennings, a Texas prisoner, was a faithful listener of KSCS radio, which promised that it played “at least five in a row or we pay you $25,000.” Jennings sued for $25K alleging that KSCS routinely played three songs, then two commercials, then two more songs and and that it had refused his demands for the money. Consideration? [Jennings v. Radio Station KSCS, 708 S.W.2d 60 (1986)]
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Case Example Latrelle contracts with Fireproof Insurance company to insure his home against fire loss. He agrees to pay Fireproof $500 per year if they will pay him up to $300,000 in the event of a fire. After a year, Latrelle has not had any fires in his home and sues Fireproof for return of his $500, arguing that there was no consideration for the contract. Is Latrelle right?
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In early 1951, Hilda Boehm had a tryst with Louis Fiege, after which she became pregnant. He promised to pay her $10 per week for 21 years if she promised to refrain from suing for child support. He paid for a while, but stopped when he learned that the child was not his. Was there consideration? Did she win? Fiege v. Boehm, 210 Md. 352 (1956). Could she have successfully maintained a similar
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Law-12 - Chapter 12 Consideration Basic Requirements of a...

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