What is a promise to refrain from doing something you are legally entitled to do?
What is Consideration for a Contract?Consideration is anything of value. Recall that a valid contract must include an exchange of value between the offeror and offeree. The value should be the inducement or incentive for the other party entering into the agreement. That is, it must be the subject of the bargain between the parties. A promise to make a gift is not binding because the party receiving the gift gives no value in return for the promise. When the existence of consideration is not clear, the court will examine the transaction as a whole to determine if consideration exits and the contract is enforceable. Show
Next Article: Promissory Estoppel Back to: CONTRACT LAW What are Some Types of Consideration for a Contract?The amount or value of the consideration present does not matter. It need not be money or goods. Acceptable types of consideration include: Agreement to Refrain: An agreement to refrain from doing something that you have the right and ability to do may constitute consideration.
Agreement Not to Sue: An agreement not to sue the other party may be sufficient consideration when reasonable grounds exist to make a lawsuit possible.
Prior Consideration - Generally, consideration in a prior agreement is not valid consideration in a new agreement, except in very limited circumstances. The reason is because the individual is already obligated under the old agreement. Trying to promise to do the same thing does not provide a new form of value. Under the UCC, however, a preexisting obligation can constitute valid consideration if the offeror is a purchaser of $500 or more in goods, and she offers to pay more than an additional $500 for the same goods. This exception exists to protect certain business arrangement from failing.
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Discussion QuestionHow do you feel about the requirement for consideration? Should there be a value requirement for the consideration? Why or why not? What do you think is the purpose or objective behind requiring any form of consideration, regardless of the nature or value? Practice QuestionDonna is merchant and enters into a contract with Ashley to purchase bricks from me for $10,000. In the pendency of the contract, the cost of bricks rises dramatically. Ashley will lose money by selling the bricks to Donna for $10,000. Donna realizes that Ashley is going to lose money and will likely breach the contract. Donna really needs the bricks and it is most convenient to purchase from Ashley. She offers to pay an additional $1,000 for the bricks. If, after Ashley ships the bricks, Donna decides not to pay the additional $1,000, what is the probable result?
Academic ResearchWhat is the legal term for promise?A contract is a promise or a set of promises for the breach of which the law gives a remedy, or the performance of which the law in some way recognizes as a duty.
Which of the following is a promise to refrain from doing something you are legally?Which of the following is a correct statement regarding a promise to refrain from doing something you are legally entitled to do? A promise to not do something you are legally entitled to do is sufficient consideration for a contract.
Which of the following is an agreement by a promise to refrain from pursuing a legal claim against a Promisor?Promissory estoppel is intended to stop the promisor from arguing that an underlying promise should not be legally upheld or enforced.
What is the promise in a contract?PROMISE: An engagement by which the promisor contracts towards another to perform or do something to the advantage of the latter. When a promise is reduced to the form of a written agreement under seal, it is called a covenant.
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