1. 8.1 b a c kn e x t h o m e Chapter 8 Objectives  Explain consideration.  Explain when partial payment constitutes consideration.  Give three examples of insufficient or invalid consideration.  Recognize when consideration is not required. © 2002 West Educational PublishingTo accompany Law for Business, 14e, by Ashcroft and Ashcroft

2. 8.2 b a c kn e x t h o m e Consideration  Consideration is whatever the promisor demands and receives for a promise.  The promise must impose an obligation upon the person making it.  Consideration may be doing a certain act or refraining from doing a certain act.  Adequacy of consideration is usually irrelevant.

3. 8.3 b a c kn e x t h o m e Partial Payment as Consideration  Partial payment of a past-due debt cannot be consideration.  Insufficient consideration includes  Performing or promising to perform what one is already obligated to do.  Refraining from doing what one has no right to do.  Past performance.

4. 8.4 b a c kn e x t h o m e Consideration Requirement  If Howard pledges $500 to help support his local Public Broadcasting System radio station, is he legally bound to then donate the $500?  Yes  Is consideration necessary to support an obligation of record, such as a judgment?  No Quick Quiz Quick Quiz Quick Quiz Quick Quiz Quick Quiz Quick Quiz Quick Quiz Quick Quiz

5. 8.5 b a c kn e x t h o m e Elements of Promissory Estoppel A promise is made. Promisor reasonably expects the promise to induce action by promissee. The promissee does not act. Justice requires enforcement of the promise.