1. CHAPTER 8 Consideration
3/27/2017
CHAPTER 8 Consideration
8-1 Types of Consideration
8-2 Questionable Consideration
8-3 When Consideration Is Not Required

2. 8-1 Types of Consideration
GOALS
Identify the three requirements of consideration
Recognize the various forms of consideration
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3. FOCUS List five promises you have recently made.
Beside each promise list what you received in return.
Review the list and place a check by the promise(s) that you believe would be legally binding on you if the promisee pursued the issue in court.
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4. CONSIDERATION Act, forbearance, or promise Trading Legal value
Adequacy of consideration
Nominal consideration
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5. List the three requirements of consideration.
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6. 8-2 Questionable Consideration
GOALS
Describe situations in which consideration is present only under limited circumstances
Recognize when what appears to be binding consideration is not
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7. FOCUS
Scenario
Ms. Miller tells her students: “You have worked hard, and if you continue to perform at this high level, I'll pay for a pizza party at the end of the year—if I think it is warranted.” The students continue to work hard, and class grades are high, but no party is given.
Question
Can the students enforce the promise?
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8. CIRCUMSTANTIAL CONSIDERATION
Illusory promises
Termination clauses
Output and requirements contracts
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9. Tom Waits
Thomas Alan "Tom" Waits (born December 7, 1949) is an American singer-songwriter, composer and actor.
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10. CIRCUMSTANTIAL CONSIDERATION
(continued)
Existing duty
Existing public duty
Existing private duty
Settlement of liquidated debts
Settlement of unliquidated debts
Release
Composition of creditors
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11. FALSE CONSIDERATION
Mutual gifts
Past performance
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12. What distinguishes a gift from a valid contract?
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13. 8-3 When Consideration Is Not Required
GOALS
Distinguish situations in which consideration is not needed
Recognize when the doctrine of promissory estoppel can be applied
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14. FOCUS Why are exceptions to the doctrine of consideration needed?
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15. EXCEPTIONS TO THE REQUIREMENT OF CONSIDERATION
Promises to charitable organizations
Promises covered by the UCC
Firm offers
Modifications
Promises barred from collection by statute
Statute of limitations
Debts discharged in bankruptcy
Promissory estoppel
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16. Name four exceptions to the requirement of consideration.
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