seal offer a specific property as a pledge

							Consideration
The Opening Scene, pg. 163
 Jake
 Alena
 Arkadi
 Viktor
 Jessica
Bell Ringer
   What did you think the word
    consideration meant before learning
    about it in this class?
Consideration
   Consideration:
     The exchange of benefits and detriments by
     parties to an agreement
     ○ Benefit: Something that a party was not
       previously entitled to receive
     ○ Detriment: Any loss suffered
     The law has always refused to enforce most
     “gratuitous” or free agreements.
Types of Consideration
Type 1 -Involves giving up or promising to
   give up something you have the legal
   right to keep.
Type 2- Involves doing something or
   promising to do something that you
   have a legal right not to do
Type 3- Known as “Forebearance”, is not
   doing something that you have the
   legal right to do
3 Key Characteristics of Consideration
 1.   Promise involving the concept of a
      “bargained-for exchange”
         Defined: When a promise is made in return
          for another promise, an act, or a promise
          not to act
         Example: You made arrangement to
          borrow your friend’s bike, there is no
          understanding that you would pay for the
          use, your friend decides not to let you use
          it…
         Hence, no bargained-for exchange, NO
          Contract!
3 Key Characteristics of Consideration
 Something of value
   1.        There is no specific value requirements to
             consideration.
        a)     A promise to help you clean your friend’s room can be
               considered “something of value”
        b)     Goods and services do not have to be the same as
               market value
        c)     Courts can rule consideration is “Unconscionable”,
               meaning contract is completely out of line
            All that matters is that the parties agreed freely on
             the value and the price
3 Key Characteristics of Consideration
 1.    Legality of consideration
      1. Court requires all consideration in an
         agreement be legal
      2. If the consideration is illegal, then the
         contract is invalid
      3. Parties cannot agree to do something they
         have no legal right to do
      4. Also can’t give up something they do not
         legally own or have a right too
Types of Consideration Commonly
Used to Secure a Contract
   Money
     Some limits: administrative regulations
     Rent, fuel, oil, and natural gas
   Property
     Exchange one comic book for another
   Services
     Do one thing for another
Types of Consideration Commonly
Used to Secure a Contract
   Promises not to sue
     Example 2, pg. 168
     Women was eating lunch at Martini’s
     She had tuna and immediately got ill
     She went to hospital and was diagnosed
      with food poisoning from improperly
      refrigerated seafood
     She sued the restaurant for failure to
      refrigerate the tuna properly
     Martini’s offered her $5,000 if she would
      drop lawsuit
Types of Consideration Commonly
Used to Secure a Contract
   Charitable pledges
     Example 3, pg. 169
     Saint Carmela’s Church announced to
      the parish they were beginning a
      campaign to re-roof the church
     Parishioners pledged more than $12,000
     Relying on these pledges, the church
      began work on the roof
     At this point each pledge becomes an
      enforceable agreement, no matter how
      small
Problems with Consideration
   Parties involved in contracts
    sometimes disagree over the amount
    of consideration of the contract
   Disputed amounts can be settled by
    accord and satisfaction
     Accord: Acceptance of less than amount
      owed by creditor
     Satisfaction: Agreed-to-settlement
      contained in the accord
   Undisputed amounts can not be
    disputed if the parted have mutually
    agreed to a set amount of money
Class Work
   Vocabulary – Chapter 8, Section 1
Concept Review
 Law Class Blog Chapter 8
 POP QUIZ ---- 3 Questions
 Be thorough and complete!
Agreements Without Consideration
Introducing the Section
   Did you ever do something based on a
    promise someone made to you?

   Did you ever quit a job because
    someone promised a better one?
Enforceable Agreements Without
Consideration
 Promises under seal
 Promises after discharge in bankruptcy
 Debts barred by the statute of limitations
 Promises enforced by promissory
  estoppel
 Options
Enforceable Agreements Without
Consideration
   These are Enforceable Agreements
    without Consideration because:
     They are allowed by state statute, or
     because courts, in the interest of justice and
     fairness, find it inappropriate to require
     consideration
Enforceable Agreements Without
Consideration
   Promises under seal
     Mark or impression indicating that the instrument
      was formally accepted
       ○ Common in contracts, also know as “Notary Seals”

   Promises after discharge in bankruptcy
     Court hearings must be held
       ○ Debtors must be informed of legal consequences of
         assuming debt

   Debts barred by the statute of limitations
     Statute of limitations for lawsuits
       ○ Two years
Promissory Estoppel
 Promissory – “containing or
  consisting of a promise”
 Estoppel – “restraint on a
  person to prevent him or her
  from contradicting a previous
  act”
 Promissory Estoppel – “the
  court will ‘estop’ the person who
  made the promise from claiming
  that there was no consideration
Unenforceable Agreements Without
Consideration
 Why are they
  unenforceable?
   The courts find
   these lack even
   the most basic
   qualities of valid
   consideration.
Unenforceable Agreements Without
Consideration
   Illusory Promises
     Example 7, pg. 177
 Future Gifts
 Past Consideration
     Example 8, pg. 177
   Preexisting Duties
     Example 9, pg. 178
     Discussion Starter
Unenforceable Agreements Without
Consideration
   Illusory Promises
     Meaning they appear at first
     glance to be contracts but on
     further scrutiny are revealed to be
     hollow
       ○ John and Paul reach an agreement that John
         will sell Paul any apples that he might need
         over a three month period.
       ○ They develop a price for this time frame
       ○ However, because Paul might not order any
         apples within the next three month, he is not
         bound to do anything
Unenforceable Agreements Without
Consideration
   Future Gifts
     Person promises to bestow a gift
     at some future time or in a will,
     that promise is not enforceable
   Past Consideration
     The act of giving or exchanging
      benefits or detriments must occur
      when a contract is made.
     Past consideration, taken in the
      past is not regarded as legal by
      the courts
Unenforceable Agreements Without
Consideration
   Preexisting Duties
     If a person is already under legal
      obligation to do something, a promise to
      do that same thing is not consideration
   Promise to Attend a Social
    Engagement
     All contracts are agreements, but not
      all agreements are contracts
     An agreement to meet for lunch would
      not be binding if the friend gave nothing
      in exchange for the promise
Classwork
 Finish Packet
 Exam on Wednesday