AJ 025 Chapter Notes - Chapter 12: Estoppel, Quasi-Contract, Extortion

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Consideration: the value given in return for a promise or performance in a contractual agreement: something of legally sufficient value must be given in exchange for the promise, there must be a bargained-for exchange. Bargained-for exchange: item of value must be given or promised by the promisor (offeror) in return for the promisee"s promise/performance. Something must be done in order to receive item. Adequacy of consideration: involves how much consideration is given (fairness of the bargain) The general rules: determination of whether consideration exists does not depend on the values of the things exchanged. Does not need have direct economic/financial value to be considered legally sufficient consideration. When voluntary consent may be lacking: a large disparity in the amount or value of the consideration can indicate that fraud, duress or undue influence was involved. Agreements that lack consideration: parties may think they have exchanged consideration when in fact they have not.

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