Consideration
This is the legal definition of consideration
Both sides gain something fair
This element of a contract is defined based on offering to give something, trading what was offered and it must have legal value
Consideration
If someone offers their friend a gift for their birthday, since we know consideration is not present, what is this considered?
A social agreement
Rob goes over to a garage sale one day and learns its at his old high school chum Reggies. Rob walks over, shakes Reggies hand and they talk for a bit. After a few minutes, Rob see's an old high school trophy from Rob and Reg's high school bad mitten team Championship in which they won a state title. Right next to the trophy is also another trophy that says "Bills World Championship" from 2026. Rob says to Reg "Is this real?" and Reg says "Of course". Rob pays the $2500 Reg is asking only later to find out its a fake. What element of consideration is missing?
Legal Value, as its a fake and not what Rob wanted
When consideration is traded, it must be this?
Fair
T/F: Anytime one party gains something, it shows consideration
FALSE! (Both parties must gain something)
When there is an intent to deceive and an intent to injure, this is what is being proven
Fraud
Who determines legal value in a contract?
The parties involved in the contract
Trey is excited as he was told if he gets a 100 on the upcoming quiz in Business Law, he gets to wrestle The Rock in the summer at WrestleMania 34. Trey was promised this by his teacher and after getting a 100, Trey gets a hotel room and airfare to get to the match, which is in Houston. The total cost to Trey is $2750. After getting to Houston, Trey learns the match was not taking place and wants his money back. What can Trey claim he took on that allows him to get his money back?
Legal Detriment (Acting on a promise)
Who determines economic value in a contract?
People involved in contract
If consideration can be proven in a contract, it must be determined that it is this?
Fair
These are the 3 elements needed to be proven to show consideration exists
Give, trade and legal value
Reg says to Rob "Where did you get your hair cut?" and Rob says "Joe the Barber, why?" and Reg says "I really need a haircut as I have a BIG date tonight. Can you set up a haircut after school for me?" and Rob says "Sure if you lend me your car to get to work tomorrow". If both agree at this point, who would be considered the promisor and who would be considered the promisee?
Promisor- Reg
Promisee- Rob
Olivia loans Gavin money and after 3 months, learns Gavin cannot pay her back the monthly $200 he promised, along with interest. Gavin says "I am out of work and need to work something out. If I promise not to pay you for 3 months in exchange for an additional $50 interest, can I have the time off?" and Olivia agrees. What is this called?
Forbearance
The example of this is giving someone a $1.00 in exchange for a home, in order to create a contract What does the $1.00 represent?
Nominal Consideration
When a party takes this on, they are acting based on a promise
The first element of consideration includes offering a promise, an act or this?
Forbearance
What must the court show is missing to determine if consideration is not fair?
Genuine Assent
Joe is stocking bananas at Tops one day and a customer named Morgan comes in. Morgan is looking for mangos and Joe points at the bin 3 rows back. Morgan says "Joe you are a wonderful employee for Tops. I plan to put in a good word for you". Morgan pays for her mangos and leaves. What was exchanged by Morgan and Tops to make this contract take place?
Exchange of 2 promises OR 2 benefits
In order to prove a contract trade is not fair, you must show this element of a contract is missing
Genuine Assent
What is defined as promising NOT to do something I have a legal right to do?
What part of the elements of consideration means the parties accept what is being offered to them as fair
This is defined as a token or small amount of consideration?
Adam decides to thank farmer Willie, as she has been so nice to him. Adam goes to the store and buys her a scarecrow, because farmer Willie is sick and tired of the birds stealing her crops, plus Adam was thrilled to be her barn boy. 3 questions.. 1. Is this a contract? 2. Does this transaction contain consideration for either party? 3. What are the 3 elements of consideration needed to be proven?
1. No, not contractual
2. No, consideration must be 2 sided and Adam gets nothing
3. Give, Trade and Legal Value
This is defined as a change in the position of the parties as a result of the contract
Legal Value