2. Consideration CHAPTER 9-1 QUIZ REVIEW

3. What is consideration?  Each side gains something  Fair but not necessarily equal  Change in your legal position as a result of the contract (Legal value)  Must be based on genuine assent (Entering under free will)

4. What can be traded?  Act  Promise  Forbearance

5. ACT  Buying something at a grocery store or going to work then getting paid

6. PROMISE  Agreeing to paint a home in exchange for getting paid for services

7. FORBEARANCE  Agreeing not to do something you have a legal right to do (Not paying a loan back temporarily)

8. ELEMENTS OF CONSIDERATION  Give  Trade  Legal Value

9. GIVE  The actual promise made to the other side- “I’ll give you $50 for your lawnmower”

10. TRADE  Proof you gave the other party what you agreed (You get the lawnmower, they got the $50)

11. LEGAL VALUE  What you received has value in the eyes of the law (Fair value)

12. WHAT CAN BE TRADED  A benefit for a benefit (Most common)  A detriment for a detriment (Least common)  A benefit for a detriment

13. BENEFIT  Something you gain  Buying a bag of chips at a grocery store or buying a car  Something you did not have before the purchase

14. DETRIMENT  A responsibility you take on that you would NOT have taken on if not for the promise made to you to get into an agreement

15. GIFT GIVING  Does not contain consideration  Donor- gift giver  Donee- Receiver of gift

16. Promises  Some promises are binding, some are not  Binding if there is a detriment  Promisor- Making the promise  Promisee- Receiving the promise

17. SMALL AMOUNT OF CONSIDERATION  Token or Nominal  Giving someone $1.00 for a car so its not a gift, but rather a contract

18. FINALLY  Courts do NOT allow fights over value of consideration  Courts look at adequacy or fairness, not equal  QUESTIONS??