1. George Mason School of Law
Contracts I
Consideration
F.H. Buckley

2. Six Questions Definition: Benefit-Detriment and Bargain Theory
Family Promises
The Effect of a Seal
Adequacy of Consideration and Nominal Consideration
Past consideration rule
Relevance of Motive

3. The need for a consideration
Requirement of a Bargain § 17(1), 71
Agreement and Bargain: § 3

4. The need for a consideration
What was the consideration in Hamer v. Sidway at p. 42?

5. The need for a consideration
What was the consideration in Hamer v. Sidway at p. 42?
The nephew was
going to the dogs…

6. Hamer v. Sidway What is the benefit-detriment standard?
Do we have to ask whether it was an unpleasant detriment?
Or whether it was a benefit to the uncle?

7. Hamer v. Sidway What is the benefit-detriment standard?
Can you suggest why the uncle might have intended that the promise be legally enforceable?

8. Kirksey p. 128 Why did Isaac invite Antillico to Talladega?
It wasn’t to see
the speedway…

9. Kirksey Why did Isaac invite Antillico to Talladega county?
Was there a benefit to Isaac?
A detriment to Antillico?

10. Kirksey Why did Isaac invite Antillico to Talladega county?
Was there a benefit to Isaac?
A detriment to Antillico?
Williston’s tramp at p. 130?

11. Family Promises Do you think Isaac intended legal liability?
The problem of family promises

12. St. Peter v. Pioneer p. 43
Why didn’t the theatre restrict bank night to paying patrons?

13. St. Peter v. Pioneer
Why didn’t the theatre restrict bank night to paying patrons?
So was there a contract with non-paying people waiting outside?

14. St. Peter v. Pioneer
Why didn’t the theatre restrict bank night to paying patrons?
So was there a contract with non-paying people waiting outside?
How was the Π to accept?
Unilateral vs bilateral

15. St. Peter v. Pioneer “The requested acts were bargained for”
Restatement § 72
Can you articulate why the theatre might have wanted the promise to be binding?
Recall Lefkowitz

16. The Bargain Theory
Was Kirksey a bargain situation? What about Hamer v. Sidway?
Spiedel at 134 on the move to a capitalist economy
Is something else going on with family promises?

17. The Bargain Theory How would you define it?
You and I want to set a date for lunch but quarrel over the date. Is this bargaining?

18. What if there’s no bargain: Gratuitous Promises
Uncle Ebenezer might want to bind himself? So how does he do so?
At common law, a gift is effective if:
Donative intent (animus donandi),
Delivery by donor, and
Acceptance by donee

19. What if there’s no bargain: Gratuitous Promises
Uncle Ebenezer might want to bind himself? So how does he do so?
What constitutes delivery by donor?
Actual delivery of gift
Constructive delivery (e.g. key to car or house)
Deed of gift

20. What if there’s no bargain: Gratuitous Promises
But what if he doesn’t have anything to give at that point and can only promise to give in the future?

21. The seal

22. The seal Definition: Restatement § 96
Effect of seal: Restatement § 95(1)
Statutory abolition?

23. The Adequacy of Consideration
Wolford v. Powers 141
Could a court measure the difference in values?

24. Wolford v. Powers What was the consideration from the Wolfords?
“be it ever so small”: Restatement § 79
A peppercorn

25. Lon Fuller on Consideration p. 135
The evidentiary function
Evidence that a promise exists
The deterrent function
a check against rash promises
The channeling function
“channels for the legally effective expression of intention”

26. Lon Fuller on Consideration
Does all this simply come down to the intention to be legally bound?
Is that all there is?

27. Re Greene p.130 What was the consideration?
What do you think was going on here?

28. Re Greene What was the consideration?
“for one dollar and other good and valuable consideration”
Nominal consideration vs. Adequate consideration
What if they had added “the receipt and adequacy thereof is hereby acknowledged”

29. Re Greene Where was the consideration?
What about the seal?

30. Nominal Consideration
Suppose I promise to give you $1,000 in return for $1?
Schnell v. Nell (p. 146)

31. Schnell v. Nell (p. 146)
A promise of $600 to honor wife’s promise in will consideration of:
Promise in will
one cent
love and affection for deceased wife

32. Batsakis p.139
Is this a case of nominal consideration?

33. Batsakis p.139
What happened three
weeks later
Athens, April

34. Batsakis p.139
Why did they structure the April 2 loan of $25 as a loan of $2,000 at 8 per cent?
Is this a case of nominal consideration?
Recall Aquinas’ Starving City

35. The Past Consideration Rule
Restatement § 86
Note that there was past consideration in Wolford

36. Past Consideration
A reward is offered for apprehension of a thief. Policeman catches thief in performance of his duties.
Is there consideration?

37. Past Consideration
A reward is offered for apprehension of a thief. Policeman catches thief in performance of his duties.
Restatement § 73, illustrations 1 and 2

38. Past Consideration
A reward is offered for apprehension of a thief. Policeman catches thief in performance of his duties.
Why is this a sensible policy?

39. What’s wrong with a public official charging for services?
I don’t get it…

40. Performance of Prior Legal Obligation
Compromise with creditors?
Restatement § 73, illustrations 5 and 6

41. Does the offeree’s motive matter?
Williams v. Carwardine (p. 147)
“believing that she has not long to live, she makes this voluntary statement to ease her conscience, and in hopes of forgiveness hereafter”
Restatement § 81(1)

42. Mutuality of Obligation
Either both are bound or neither is bound
Restatement § 79: not a separate requirement
Inapplicable in unilateral contracts