BLAW 342 Exam 3 Question and answers 100% correct
What is Consideration? - correct answer Consideration is some value given in exchange for a promise or performance.
•Consideration has two required elements:
1.Must have something of legal value or sufficiency; and
2.Must be a bargained-...
BLAW 342 Exam 3 Question and
answers 100% correct
What is Consideration? - correct answer ✔Consideration is some value
given in exchange for a promise or performance.
•Consideration has two required elements:
1.Must have something of legal value or sufficiency; and
2.Must be a bargained-for exchange.
What is a Legally Sufficient Value? - correct answer ✔To matter, the
consideration at issue must be something of legal value given in return for:
1. A promise to do something
-Ex: pay on receipt of certain goods
2. The performance of an action, or
-Ex: providing accounting services
3. The refraining from an action(forbearance)
-Ex:
What is Bargained-for-Exchange? - correct answer ✔It is the basis for the
bargain between the parties
-typically some value given by the offeror to obtain goods or services, or
forbearance from the offeree
Bargained-for-Exchange is what separates valid, enforceable contracts from
gifts
What is Bargained-for-Exchange?: Gift Promises
,1. Parents promise freshman new car for college.
-Is this enforceable?
2. Parents promise freshman new car for straight A's. S/he makes all A's.
-Is this enforceable? - correct answer ✔1. no, freshman doesn't return
anything
2. yes, straight A's in exchange for car
Hamer v. Sidway
What did the uncle promise the nephew?
•What was the nephew obligated to do in return?•Did the nephew keep his
part of the agreement?•Did the uncle keep his promise?
•Did the court rule for the uncle or nephew?
•What were the reasons for the decision? - correct answer ✔No tobacco,
alcohol, gambling, etc until he was 21 and uncle would give nephew $5,000
Nephew kept part of agreement
The uncle did keep his promise
The uncle in lower court but nephew in higher court because nephew help his
end of the bargain
Agreements that lack Consideration - correct answer ✔1. Pre-existing duty
2. Past Consideration
3. Illusory Promises
, What is a Pre-existing Duty? - correct answer ✔A promise lack consideration
if a person promises to perform an act or do something s/he is already under
an obligation to do
-exception: unforeseen difficulties
What is a Pre-existing Duty?
$1 million reward posted for capture of rogue cop. 1.Police officer captures
him. Can s/he collect reward?
2.Citizen wo/man provides tip for capture. Can s/he collect reward? - correct
answer ✔1. no, already contractually obligated to do so
2.yes
Isa Pre-existing Duty Present?
ABC Construction company is doing excavation for a new Penn State
dormitory.
•While digging, they encounter Native American antiquities.
•Law says that these must be removed carefully and preserved
.•May ABC Construction pass this cost on to Penn State?
-What fact do you need to know to answer this question? - correct answer
✔Yes, (unforeseen difficulty)
Is it unforeseen?
What is Past Consideration?
Jack and Peter are friends.
•Over course of the last 4 years, Peter helped with personal errands.
•On 1/1/16, Jack gave Peter a note saying that he owed him $50,000 for his
help.
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