BLAW 3201 Quiz: Ch 12 Consideration (aced the test and got 96%)
Document Summary
Definition- the inducement to enter into a contract. Definition- consists of either a benefit to the promisor or a detriment to the promise. Legal benefit- obtaining something to which one had no prior legal right. Legal detriment- doing an act one is not legally obligated to do or not doing an act that one has a legal right to do. Adequacy- not required where the parties have freely agreed to the exchange. Illusory promise- promise that imposes no obligation on the promisor ex: if ames, inc. , agrees to sell to barnes co. as many barrels of oil as barnes shall choose at. a barrel, there would be no consideration: barnes may wish or desire to buy none of the oil, yet in buying none it would fulfill its promise. Barnes is not bound to do anything, nor can ames reasonably expect to receive any performance. Thus, barnes, by its promise, suffers no legal detriment and confers no legal benefit.
