The measure that tries to put the injured party in the position that thecontract had never been made.3.
the measure of damages that will reimburse the injured party for whatever benefit he has conferred on the breaching party (defendant).
*None of these are punitive in nature. The court does not try to impose greater damage award greater than what the injured party lost. Want to deter futurebreaches not contracts.
is allow to elect which damages he/she seeks
: an exchange of a promise for performance (
I promise to giveyou $50 if you give me your case book«.when you give me the casebook, we have alegally enforceable contract--terms of which I now owe you $50).
exists when you give him the cash and not before2.
a promise exchanged for a promise; a contract is formed the momentboth promises are exchanged (
I promise to give you $50 if you promise to give meyour casebook (and you promise)).
exists the moment promise was exchanged
In both contracts there is an exchange. To have a bargain, you must have an exchange.
Why do contracts have to have Consideration?
Cautionary: Serves as a formality that alerts people that they are doingsomething with legal consequence.
Evidentiary: Evidence for third parties that there is a legally bindingarrangement.
Channeling: Screening mechanism; not every promise can beenforced.
Economic: Leads to efficiency in the market place.
tes Consideration? Bargain + Lega
a bargained exchange
in which each party incurs a
Bargained for Exchange
Consideration is a bargained-for performance or returnpromise which is
given by the promisee in exchange for the promisor's promise.
Consideration need not be furnished by or to the parties themselves as long as it is part of the bargained exchange.
Even if the promissor's promise induced performance or a return promiseby the promisee, if such inducement was not sought by the promisor,there is no bargained exchange. In such circumstances, the promise ismerely an unenforceable gift. See Kirksey v. Kirksey
The promisee must incur a legal detriment in exchange for thepromise.
Detriment can be an act or a promise
.Legal detriment exists where:
promisee does or promises to do something he has no legal obligation to do; or
refrains or promises to refrain from doing something he has a legal right to do.
Exceptions to Consideration: I-VI
If the detriment on the part of the promisee confers a benefit on the promisor then itis a bargain (mutually reciprocal).