CONTRACTS ± SPRING 2010 [Prof. Hakes; ³Contracts´ by Farnsworth]
I. Bases for Enforcing Promises
Option Contracts Irrevocable contract because on party tenders consideration tokeep contract open until a certain time or they decide to reject the offer.
. Remedying Breach
Damages for breach of contract are calculated by the actual loss sustained anduncertainties are generally resolved against the wrongdoer.Expectation interests, restitution interests and reliance interests are used inmeasuring damages to put the promisee in the position in which she would havebeen had the promise been performed
3. Consideration as a Basis for Enforcement
(A) FUNDAMENTAL CONSIDERATION
In general, a waiver of any legal right at the request of another party is sufficientconsideration for a promise.The forbearance from asserting a good faith legal claim constitutes a validconsideration.
(B) REQUIREMENT OF EXCHANGE: ACTION IN THE PAST
Mutuality of obligation requires that consideration for a promise be bargained forand given in exchange for that promise.Past consideration and moral obligation alone are insufficient consideration to makea promise enforceable.A moral obligation is sufficient consideration to support a subsequent promise wherethe promisor has received a material benefit.
(C) REQUIREMENT OF BARGAIN
An injured party cannot recover damages sustained from a breach of a gratuitouspromise, even if the injured party reasonably relied upon the promise and hassuffered loss and inconvenience.