1. Chapter 11 Mutual Consideration

2. What is Consideration? Promisor - the person who gives the promise or action in exchange for the promise or action of another. Promisee -the person to whom the promise or action is given in exchange for the other persons promise or action Consideration -what on gives and receives in a contract Forbearance -refraining from doing what one has a right to do.

3. Why is Consideration Required? Gift -the voluntary transfer of ownership of property without receiving consideration in return. Seal -an impression on a document, a paper, or wax affixed to the document, or the word Seal or the letters L.S.on the document indication that the parties intend to be legally bound.

4. What is Sufficient Consideration? Nominal Consideration -a token amount (consideration) identified in a written contract when parties wither cannot or do not wish to state the amount precisely

5. Is an Existing Obligation Consideration? Compromise if a disputed claim -mutual promises to refrain from bringing suit. Composition of creditors -agreement of all creditors to accept a proportion of their claims as full payment.

6. Is past Performance Consideration? Past Consideration -value given before a contract is made.

7. What are exceptions to the requirement of mutual consideration? Promises of Financial Support to Charitable Organizations. Promissory Estoppel –Promissory Estoppel -when a promise is enforced even though no consideration is given for it. Commercial Paper State Statutory exceptions