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There is no consideration/contract when there is a preexisting duty to care (its not a fresh cause) Borelli v.

Brusseau Borellis husband had a stroke, she wanted to put him in a home, he offered her many properties if shed care for him at home, she agreed, when he died he didnt leave the properties to her in the will, ct said there was no consideration on her part because it was her duty to care for him Wife had a pre-existing duty to her husband be v. !uanita !uanitas store was burglari"ed, she offers a reward, be a part time security guard, finds evidence and arrests someone, he cant claim reward would be a corruption problem #ince cops are always on duty they have a pre-existing duty and cant collect reward money $estatement %&nd' of (ontracts ) *+%+' , cmt b o The consideration and the promise bear a reciprocal relation of motive or inducement. o -aw is not considered with the mental state must have an external manifestation .roper form consideration must be in a certain form/ a benefit, detriment, or mutual promise Consideration is the ground of every action on the case and it ought to be either a charge to the ! or a benefit to the ". %#tone v. Withepoole' Consideration is a present exchange bargained for in rtn for a promise. #t consists of either a benefit to the promisor or a

detriment to the promisee. %$oark v. #tallsworth' 0his is the consideration rule as its used today Benefit 1 to the promisor %one who makes the promise' 2ame v. 3arvie . loaned 4 to 5 to repay on re6uest, but when . re6uested it back, 5 didnt want to pay, . won $ promise is ground upon an accommodation by way of a loan which creates an implied benefit because the " gets the money 7n consideration for the use of the 4, is a promise to repay the 4 $iches v. Bridges . owed !# &8 combs of barley on 9 day, . told 5 he would deliver the barley to him on a day before 9, 5 took upon the duty and promised to deliver the barley to !# on 9, . delivered the barley to 5 who didnt deliver it to !# :it shall be intended that he has some benefit, otherwise he would not make such a promise; %enefit can mean merely having possession and using that possession to be loo&ed upon favorably by others. 'arly payment of a lesser amnt can serve as a benefit. %$eynolds v. .inhowe . paid 5 only < of the =lbs he owed, 5 took < as full pymt' There is a benefit to settle a dispute claim outside of court ssociated Builders, 7nc. v. William (oggins (oggins owed B7 a certain amnt, B7 agreed to take a lesser amnt as long as the (oggins pymts were on time, (oggins &nd pymt was > days late but B7 accepted it and then filed

suit for breach of contract (t said that by accepting the late pymt, B7 waived their right to enforce the accord, relieving (oggins of the contractual obligation ccord/ a contract under which an obligee promises to accept a substituted performance in future satisfaction of the obligors duty #ettlement of a disputed claim is sufficient consideration for an accord and satisfaction $ waiver is a voluntary or intentional relin(uishment of a &nown right. %y accepting a late pymt one disregards an accord and the right to enforce an original obligation. )atisfaction is the execution or performance of the accord. ?oral obligation all of the moral obligation cases have no consideration Exception: $ new promise to pay a discharged debt is sufficient consideration to revive the enforceability of the debt (moral obligation) @dmonds (ase Baby asked to borrow >8lbs from ., . borrowed the 4 from 9 to give to baby, . was later sued , forced to repay 4 himself, when baby is of age, . asks baby to repay debt, baby promises to pay it back but doesnt This is the law!!

) Exception: Contracts of minors are voidable at the will of the minor )herwood ) but they must pay the *ust value of the necessities of the contract @x parte 7ris Adom the minor parent executes a contract to pay for medical services for her infant, minor does not follow thru and repay contract, hospital sues her for contract B atty fees ct said she had to repay for doctors care, but not atty fees o :it is the policy of the law to protect infants against their own mistakes or improvidence, and from designs of others, and to discourage adults from contracting

%an&ruptcy $ct ++,)C - ./0 Cou are responsible if you reaffirm a relin6uished debt because you feel a moral obligation 1 exceptions %Dote case In re Ray' promise to pay a debt contracted during infancy was enforced

with an infant; .A-7(C/ if a person can pay what is necessary to their existence, then they need to do that ) Exception: !erformance can be induced by implied consideration. 3unt v. Bate & 5 promised to pay . &8lbs if . would marry 5s cousin, (t said . wins 5 re6uested the action of . after the wedding so it was past consideration o @x. asks B to wash s car, B expects to get paid so he was probably induced by the prospect of getting paid

promise to pay a debt barred by the statute of limitations was enforced bankrupt was morally obligated to pay a discharged debt was sufficient consideration to revive the enforceability of the debt 2oral obligation can be sufficient consideration 3 even if there was no bargain Webb v. ?c2owin While working at a mill cleaning, W went to drop a pine block from the upper floor down below, Eust as he was about to let it go, he saw ? down below. $eali"ing the inEury ? would incur, W fell with the block, causing himself life long disablement but saving ?. ? agreed to care for and maintain W for the rest of Ws life. ? dies and his estate refuses to pay W. (t found for W. @ven though there was no consideration for W to save ?s life, ? had a moral obligation to W for his actions. 0here is no bargain and its not supported by case lawFF Gor there to a bargain a promise must induce payment and payment must induce promise $ humanitarian act voluntarily performed is not consideration that would entitle one to recover at law. %3arrington v. 0aylor 5 was being a wife, W was about to decapitate

3 when . intervened and got her hand mutilated. . saved 3s life.' 0his case is followed rather than Webb v. ?c2owin 4estatement (/nd) of Contracts - 56 7 cmts 7f youre going to recover under H@ you dont need ) IJ lmost no one follows ) IJ 5etriment 1 to the promisee %one who the promise has been made to' $ detriment to one party is sufficient consideration to enforce a contract. %Webbs case 5 pays . to make a .A , 5 doesnt get what he expected from using the .A , tries to back out, but the labor counted as consideration' #f the one who the promise is made to is harmed by the promise and performed his part then in that case he shall have an action for that thing that was promised though he has made the promise that has no benefit. %(hristopher #t. 2erman' %#torers (ase agmt btwn ,B B leases to , when time to sign lease, refused due to repairs, #torers says to if signs lease hell make repairs so no benefit to #torers' Don-bargained promise induced benefit 1 counts as consideration %Keyme v. 2oulston . ' Don-bargained promise induced detriment 1 counts as consideration #ettlement cases #f a claim is wholly invalid neither forbearance to sue nor a compromise thereof can be good consideration. %Kim v. #on K loaned # money for two business ventures, money was

invested in companies, # wrote letter in blood stating hed pay it back' Blood agmt lacked sufficient consideration bLc wasnt the result of a bargained for exchange bLc #on only made it because he felt guilty (orporation had debt, not #on 0he compromise of a claim, either valid, doubtful, or disputed, is good consideration, the claimant giving up his or her asserted right to recover the whole amount as consideration for a promise to pay a lesser amount @xception %this case is the exception' 7f a claim is wholly invalid, neither forbearance to sue nor a compromise thereof can be good consideration 7f the forbearance has no value, it will not suffice 8orbearance can be considered consideration in a promise if it is made in good faith. #f the claimant has a reasonable belief in the grounds of their claim they are *ust to try to enforce it. %5yer v. Datl By-.roducts - ' (laimant must Eust believe he has a good faith claim. $estatement %&nd' of (ontracts ) *< .olicy/ .olicy favoring compromise of disputed claims is clearest where a claim is surrendered at a time when its uncertain whether it is valid or not.

7f claim is valid a promise to pay was enforceable bLc it was supported by consideration, namely your forbearance 7f your claim is invalid, the promise would not be enforceable on public policy grounds 7f you think your claim is valid but its not claim is :colorable; or :doubtful; and treats your forbearance to sue as good consideration ?otive wasnt to extort Cou only have to reasonable or honest about your belief not both H.(.(. ) +-&8*/ .erformance or cceptance Hnder $eservation of $ights party who with explicit reservation of rights performs or promises performance or assents to performance in a manner demanded or offered by the other party does not thereby preEudice the rights reserved. #uch words as Mwithout preEudiceM, Munder protestM or the like are sufficient #ubsection %+' does not apply to an accord and satisfaction.

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