2 CONSIDERATION Consideration is a required element of every contract
3 CONSIDERATION “The law does not hold us accountable for every promise we make. The doctrine of consideration determines which promises a court must enforce.”
4 CONSIDERATION Consideration can be anything that someone might want to bargain for.
5 CONSIDERATION Consideration means that there must be bargaining that leads to an exchange between the parties. A bargain and exchange must take place between the parties.
6 THE PARTIES A promisor is the person who makes the promise. The promisee, is the person to whom the promise is made.
7 BARGAINING Bargaining is obligating yourself in order to induce the other side to agree.
8 A BARGAIN AND AN EXCHANGE The thing bargained for can be: another promise or action. a benefit to the promisor or a detriment to the promisee. a promise to do something or a promise to refrain from doing something.
9 ADEQUACY OF CONSIDERATION Courts seldom inquire into the adequacy of consideration. A previously paid benefit is generally not consideration because it was not meant to induce the other side to agree.
10 MUTUALITY OF OBLIGATIONS Illusory Promise Requirements and Output Contracts
11 PROMISSORY ESTOPPEL Under the doctrine of promissory estoppel, even if there is no contract a promise may be enforceable.
12 PREEXISTING DUTY A promise to which the promisor is already obligated is not consideration.
13 A liquidated debt is one in which there is no dispute about the amount owed. SETTLEMENT OF DEBTS
14 A debt is unliquidated if: ( 1) the parties dispute whether any money is owed, or (2) the parties agree that some money is owed but dispute how much. SETTLEMENT OF DEBTS