Quick Answer: Is A Promise Valid Consideration?

Is a promise to pay sufficient consideration?

It may consist of a promise to perform a desired act or a promise to refrain from doing an act that one is legally entitled to do.

In a bilateral contract—an agreement by which both parties exchange mutual promises—each promise is regarded as sufficient consideration for the other..

What are the three types of consideration?

Kinds of ConsiderationExecutory Consideration or Future Consideration,Executed Consideration or Present Consideration, or.Past Consideration.

What are the 3 requirements of consideration?

Each party must make a promise, perform an act, or forbear (refrain from doing something).

What is consideration explain?

1) payment or money. 2) a vital element in the law of contracts, consideration is a benefit which must be bargained for between the parties, and is the essential reason for a party entering into a contract. … In a contract, one consideration (thing given) is exchanged for another consideration.

What are two exceptions to the rule requiring consideration?

One exception to the rule requiring consideration is promissory estoppel. In a bilateral contract the considerations for each promise is a return promise. In a unilateral contract, the consideration is one partys consideration is the promise and the other partys consideration is the act.

What are examples of consideration?

Anything of value promised by one party to the other when making a contract can be treated as “consideration”: for example, if A signs a contract to buy a car from B for $5,000, A’s consideration is the $5,000, and B’s consideration is the car.

What are the six types of consideration?

Me too!1.An offer made by the offerer.2.An acceptance of the offer by the offeree.Consideration in the form of money or a promise to do or not do something.Mutuality between parties to carry out the promises of the contract.Capacity of both parties in mind and age.Legality of terms and conditions.

What are the rules of consideration?

The following are the Rules governing consideration in a contract.Consideration must move at the desire of the promisor.Consideration may Move front the Promisee or any other Person.Consideration may be Past, Present or Future.Consideration need not be Adequate.Consideration must not be Illusory but should be Real.

What are the elements of consideration?

Elements of consideration 1. A performance or a return promise must be bargained for. 2. A performance or return promise is bargained for if it is sought by the promisor in exchange for his promise and is given by the promisee in exchange for that promise.

When would a court consider the adequacy of consideration?

Courts consider the adequacy of consideration only if something is sold for less than 90% of its market value.

Is a promise not to sue consideration?

Because Edy is legally entitled to sue Jerry for damages, her promise to forbear from suing Jerry in exchange for Jerry’s promise to pay her $1,000 is valid consideration. … Therefore, many authorities treat consideration as equivalent to any factor that will make a contract or promise enforceable.

What are the four types of consideration?

Common types of consideration include real or personal property, a return promise, some act, or a forbearance. Consideration or a valid substitute is required to have a contract.

Which of the following is an exception to the rule requiring consideration?

An exception to the rule requiring consideration is promissory estoppel. An illusory promise is not a consideration.

What is past consideration example?

Definitions of past consideration For example, if A promises to pay B for something that B has already performed (before the promise was made), the performance of B’s act is past consideration and is not good consideration.