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4.1-3 Consideration
Revised to January 1, 2008
The defendant claims that the contract
alleged by the plaintiff is not enforceable because it was not supported by
consideration. To be enforceable, a contract must be supported by valuable
consideration. Consideration may take the form of a promise to do or give
something of value or a promise not to do something. The essence of
consideration is a benefit or detriment that has been bargained for and
exchanged for the promise. For example, a contract whose only terms are "You
agree to pay me $200 next Tuesday" is not enforceable because you have not
received anything of benefit and I have not given up anything. There is no
consideration for your agreement to pay me $200. But if we change the contract
so that its only terms are: "I will agree to sell you my bicycle next Tuesday if
you agree to pay me $200," then the contract has consideration. You are
receiving the benefit of the bicycle in exchange for giving up your $200.
<Relate this to claims of the
parties as to consideration or the lack thereof. If lack of consideration to
support the contract is not at issue, then, of course, this section can be
omitted.>
Authority
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