Psychology Chapter 8 Homework Perry's Promise Changing Her Position And Wiring

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CHAPTER 8

CONSIDERATION

Answers to Learning Objectives

1. Consideration is whatever the promisor demands and receives as the price of a promise.

2. Part payment constitutes consideration when the amount of the debt is in dispute and a lesser

Lesson Outline

1. Consideration is whatever the promisor demands and receives as the price for a promise.

a. Consideration may be another promise.

2. The law does not prohibit bargains, nor does it attempt to measure the value each party

receives as consideration.

3. A partial payment of a past-due debt is not consideration to support the creditor’s promise to

cancel the balance of the debt. There are several exceptions to this rule:

a. If the amount of the debt is in dispute, acceptance of a lesser sum in full settlement

4. There are three kinds of consideration that are deemed invalid:

a. If consideration in an agreement consists merely of a promise to do what one is already

5. There are several exceptions to the requirement of consideration for a contract: (a) voluntary

subscriptions, (b) debts of record, (c) promissory estoppel, and (d) modification of sales

contracts.

Comments on Cases

Chapter 8 Consideration

(p. 79) If under the contract SP had had the ability to buy carbon fibers from another supplier if

it wanted, then the contract would have lacked consideration. Structural Polymer

Group, Ltd. v. Zoltek Corp., 543 F.3d 987 (8th Cir.)

(p. 81) Since the amount of the debt was not in doubt, there was no new consideration for the

alleged promise of the bank to cancel the debt. Dennis v. First Nat. Bank of the South,

668 S.E.2d 479 (Ga. App.)

(p. 82) In this case, even though Unocal had not expressly stated it was going to file suit its

forbearance was adequate consideration. Unocal did not have to explicitly promise not to

bring suit. There was an implied promise to forbear. Union Oil Co. of California v.

Terrible Herbst, Inc., 331 F.3d 735(9th Cir.)

Answers to Questions

(Page 84)

1. Consideration is whatever the promisor demands and receives as the price of a promise. It could be

money, personal or real property, a service, or a promise regarding behavior.

2. A promise constitutes consideration when the promise imposes an obligation on the person

original contract did not require as a consideration for the extra $4,000.

6. Yes. The promise of one party is consideration for the promise of the other. For the father, the

value of the son’s promise is $2,000.

7. Forbearance does not constitute valid consideration when one promises to forbear doing

something one has no right to do, such as to commit an unlawful act.

Answers to Case Problems

(Page 85)

1. Yes. Since the second agreement required Willamette to do the same work required by the

first agreement, it received no benefit from that agreement. The court recited that a promise

to do something a party is already obligated to do is not consideration. The court said the

first agreement was enforceable. Willamette Management Associates, Inc. v. Palczynski, 38

(Ohio App.)

4. No. The alleged promise was for an indefinite period of time and it was vague since there

was no indication of what constituted continuing to negotiate. There was also no indication

Chapter 8 Consideration

they had against the other there was valid consideration. Mueller v. Zimmer, 124 P.3d 340

(Wyo.)

6. No. While Sandra may have accepted Charles’ offer a binding contract requires more than

just offer and acceptance. It requires consideration. Here there was none since Charles was

already under a duty to do what he was promising to do—pay the judgment. Watson v.

Givens, 758 A.2d 510 (Del. Fam. Ct.)