1、112Consideration“In contract law, In contract law, something of legal something of legal value that has been value that has been bargained forbargained for討價還價討價還價 and given in exchange and given in exchange by the parties.by the parties.23The Doctrine of Consideration“Promises are enforced Promises

2、 are enforced onlyonly where the where the parties have parties have exchangedexchanged something something of value in the eyes of value in the eyes of the lawof the law. .34Legal Value QuestionWhat has “legal value?Or another way to ask it:How can we tell if something has “value in the eyes of the

3、 law?45Legal Value AnswerThe promisee does or promises to do something he had no prior legal duty to do, orRefrains抑制，抑制 from doing or promises not to do something he had a legal right to do.56Consideration ExampleWhen Mike is 16, his Mom says When Mike is 16, his Mom says “Mike, youve been such a g

4、ood “Mike, youve been such a good son, Im going to give you a son, Im going to give you a brand new Porsche 911 on your brand new Porsche 911 on your 1818thth birthday. birthday.His 18His 18thth birthday comes and she birthday comes and she doesnt buy him a Porsche.doesnt buy him a Porsche.He sues h

5、er for the Porsche.He sues her for the Porsche.Will he win? Why or why not?Will he win? Why or why not?67Hamer v. Sidway78Legal Value RevisitedAnother way to look at legal value is it must be either a:Legal benefit to the promisor, or a1.Legal detriment削減 to the promisee.89Exchanges That Fail to Mee

6、t Consideration Requirements910Past ConsiderationDespite its name, is not consideration at all.Because it was not bargained for in exchange, past consideration is not valid consideration.“Thanks for fixing my car stereo. I really appreciate it. Ill tell you what, Ill give you $100 when I get my next

7、 paycheck.1011Kelsoe v. International Wood Products1112Illusory PromisesAn illusory promise is one that does not bind the promisor to do anything.“I promise to buy all the sugar I want.“I promise to buy your bike for $350 if I feel like it after looking at it.An illusory promise cannot serve as cons

8、ideration.1213Culbertson v. Brodsky1314Requirements ContractsFujitsu factory #1Fujitsu factory #2Hewlett-Packard FactorySemiconductorsSemiconductorsThe requirements of the buyer determine the quantity exchanged.1415Requirements Contracts1516Output ContractsFujitsu factory #1Hewlett-Packard FactorySe

9、miconductorsThe manufacturing capacity of the seller determines the quantity exchanged per unit time.1617Output Contracts1718Preexisting Public DutiesA promise to perform a preexisting duty, A promise to perform a preexisting duty, whether public or private, cannot whether public or private, cannot

10、constitute considerationconstitute considerationbecause the promisor already had an because the promisor already had an obligation to do it.obligation to do it.Examples of preexisting public duties:Examples of preexisting public duties:The duty The duty notnot to commit assault, to commit assault, b

11、attery, arson, defamationbattery, arson, defamation誹謗誹謗, etc., etc.1819Preexisting Private Duties: The General Rule1920Additional Work2021Preexisting Private Duties: Exceptions to the General Rule2122Contract SubstitutionA contract substitution consists of A contract substitution consists of a a res

12、cissionrescission and a new contract and a new contractA rescission must meet all the A rescission must meet all the tests of a contract: agreement, tests of a contract: agreement, considerationconsideration, legality, and , legality, and capacity.capacity.Each party absolves the other party Each pa

13、rty absolves the other party of their of their remaining promisesremaining promises. .But what if one party has secretly But what if one party has secretly coerced the other party?coerced the other party?2223Modification of contracts under the UCC2324Adequacy of Consideration2425Adequacy of Consider

14、ation: The General RuleThe courts define adequacy as “the degree to which the consideration is equal in value to the promise or item given.Then they very clearly say that consideration need not be adequate as so defined if the two parties have freely agreed to the exchange and if the consideration w

15、as the inducement 引誘for the promise!2526Exceptions to the General Rule on Adequacy of ConsiderationCourts may refuse to enforce disguised gift promises supported by nominal consideration.Courts may use inadequacy of consideration as evidence that there was fraud, duress逼迫, undue influence不正當壓力, lack

16、 of capacity, or unconscionability, and may look elsewhere in the facts for additional evidence.2627Preexisting Duty and Agreements to Settle Debts2728Liquidated Debts2829Unliquidated DebtsUnliquidated debt: A debt for which there exists a good faith dispute about 好心的爭論its existence or amount.The settlement of an unliquidated debt is called an accord and satisfaction和解與清歸還.The consideration that supports an accord and satisfaction is the rendering of the disputed debt into a certain debt of known amount.2930Hylton v. MeztiztaDid CeCe Hylton cash a check that said “fin