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CHAPTER 15: BARGAINED-FOR CONSIDERATION

CHAPTER 15: BARGAINED-FOR CONSIDERATION. CHAPTER 15: BARGAINED-FOR CONSIDERATION. Learning Objectives: Nature of the Consideration Requirement Bargain Theory of Consideration Mutuality of Obligation Contacts Valid Without Consideration. NATURE OF THE CONSIDERATION REQUIREMENT.

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CHAPTER 15: BARGAINED-FOR CONSIDERATION

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  1. CHAPTER 15: BARGAINED-FOR CONSIDERATION

  2. CHAPTER 15: BARGAINED-FOR CONSIDERATION Learning Objectives: Nature of the Consideration Requirement Bargain Theory of Consideration Mutuality of Obligation Contacts Valid Without Consideration Chapter 15

  3. NATURE OF THE CONSIDERATION REQUIREMENT • Not every agreement (offer + acceptance) will be enforced in a court. • Concept: Bargained-for exchange in the legal position of the parties. Chapter 15

  4. BARGAIN THEORY OF CONSIDERATION • Introduction to the Concepts of Legal Benefit and Legal Detriment • Both Parties Should Receive a Legal Benefit and Incur a Legal Detriment • Consideration is the Price Paid for a Promise • Elements of a Bargain • Adequacy of Consideration Chapter 15

  5. MUTUALITY OF OBLIGATION • Introduction to the Doctrine of Mutuality of Consideration (applicable only to bilateral contracts) Chapter 15

  6. MUTUALITY OF OBLIGATION • Categories where there is NO mutuality: • Illusory Promises • Lack of a Legal Detriment • Examples • Special Case: Requirements and Output Contracts Chapter 15

  7. MUTUALITY OF OBLIGATION • Categories where there is NO mutuality: • Illusory Promises • Preexisting Duty • Definition: One makes a promise when they are already under an obligation to act or not act. • Categories in which Preexisting Duty Problems Arise Chapter 15

  8. CATEGORIES IN WHICH PRE-EXISTING DUTY PROBLEMS ARISE • Modification of Non-Code Contracts • Nature of Area • Exceptions to Preexisting Duty Rule: • Changes in Duties (e.g., new duty) • Unforeseen Difficulties • Rescission Chapter 15

  9. CATEGORIES IN WHICH PRE-EXISTING DUTY PROBLEMS ARISE • Modification of Non-Code Contracts • Modification of Code Contracts • Areas Where No Consideration is Necessary Where the Parties Agree to Change the Terms of an Existing Contract • Role of Good Faith Chapter 15

  10. CATEGORIES IN WHICH PRE-EXISTING DUTY PROBLEMS ARISE • Modification of Non-Code Contracts • Modification of Code Contracts • Discharges • Discharge of Liquidated Debts • Discharge of Unliquidated Debts Chapter 15

  11. MUTUALITY OF OBLIGATION • Categories where there is NO mutuality: • Illusory Promises • Preexisting Duty • Forbearance Chapter 15

  12. CONTRACTS VALID WITHOUT CONSIDERATION • Promissory Estoppel • Moral Obligation • Firm Offers and Renunciations Chapter 15

  13. CHAPTER 15: BARGAINED-FOR CONSIDERATION

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