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Facts: David & Hazel divorced. Hazel given a divorce settlement judgment, where
she was to receive $10,300 if one of several scenarios occurred. One of the them
was if her ex-husband, David sells the property. David does sell the house , but
receives no equity from its sale (there was no money left over after the mortgage
loan was paid). Hazel's name was also on the mortgage, and was relieved of her
obligation to pay that debt. Also, David had no additional money in his name. At
the closing, Hazel signed a release that stated David no longer had to pay the
$10,300, but Hazel did not understand what she was signing.
Argument: David claims Hazel received a benefit (freedom from her obligations on
the mortgage), so her release supports consideration.
Reasoning: Release was voidable for lack of consideration. The parties did not
bargain for the release and no representations (intended to induce reliance) were
made about the release.