Enforceable Rest.

§72 – Exchange of
Payment
Kirksey v. Kirksey Promise for Performance
CONSIDERATION
Condition to receive a that is bargained for
Not Enforceable
Act gift, and gratuitous
promises are not consid.
Forbearance (1) Promisee Must Incur Legal Detriment Rest. §79 – Adequacy
of Consid.
(2) Detriment Must Induce Promise Apfel v.
Prudential
(3) Promise Must Induce Detriment Value to a party Thomas v. Thomas
Hamer v. Sidway
only relevant at Courts will not
Forbearance from a legal
time of contract assess consid.
right at time of promise Good / Bad In Re Greene
Jara v. Suprema Meats amount, unless…
Consid. for A is not Bad Faith -
Faith Nominal consid.
consid. for B.
Modifications insufficient b/c UCC §2-302(1) – Jones v. Star Credit
of possible Unconscionableness; Unequal
Fiege v. Boehm bkrptcy motives Needs both… bargaining power
Rest. §73 – Pre- Rest. §89 – Modifications Good faith in sales
Existing Duty need new consideration supersedes K
that was based Rest. §74 – Good Substantive: Procedural: Unfair
on invalid claim Faith can serve as Deal, price is bargaining power
Modifications should be:
Alaska Packer’s Consid. in an lopsided between parties
-Voluntary
Assoc. v. Domenico invalid claim
-Unanticipated
New consid. is
-Fair & Equitable Omni v. Seattle
required for
contract mod.
-Done in good faith Promise not
Wood v. Lady-Duff Output &
-K not fully performed yet illusory b/c deal
hinged on an
An implied duty to act Requirements Ks
in good faith can be
objective standard
consid.
Pre-Existing Duty Rule UCC §2.209 – & good faith
3 Safeguards:
-Discourages extortion Modifications: -Good faith
-Helps enforce the idea of New consid. -In line w/ estimate or previous
UCC §2-306(2) – When
exchange through necessity not needed, output/requirement
exclusive relationship b/w
of future promise just agreement -Production is actual production
dealer & buyer, legal CONSIDERATION
But…
implication of duty to act
-Easily circumvented with SUBSTITUTES
in good faith Rest. §90 – P.E.
new consid.
-is rigid and may impede
business Promissory Estoppel
Unjust Enrichment Quasi-Contract
Moral Obligation 1. There’s a promise
(Enforcement rare)
2. Expectation of reliance by the promissor to
-A confers benefit to B
promisee
Mills v. Wyman -B accepts benefit & appreciates
Rest. §86 – Promise for benefit 3. Person actually DOES rely on promise
Past actions are -Circumstances = inequitable to
received enforceable only if: 4. Reliance on promise must be reasonable by
not consideration, allow B to retain benefit w/o
-Not intended as a gift B and foreseeable by A
unless… paying (Unjust Enrichment)
-Promissor is unjustly enriched 5. Must be a detriment due to that reliance
-Value proportional to benefit 6. Injustice can be avoided only by enforcing
Unless… promise
Webb v. McGowan – “Injustice” -B had no chance to decline
-Extreme benefit to B Additional P.E. Q’s
benefit (B should not have to pay Ricketts v. Scothorn
-Sever injury incurred, causing -What is A & B’s relationship?
for that which he did not ask) A mere inducement
reliance to be in effect -How wealthy is A?
can be basis for P.E.
-Ongoing payments being made -Are B’s reliance obligations
-Already being enforced for years binding?
Bailey v. West
-Promise is in writing -Etc., P.E. is knowing all the facts
Acting as volunteer in conferring All-Tech v. Amway
benefit to B that B does not ask for and P.E. not applicable
explicitly refuses when K is
Blinn v. Beatrice present/enforceable
Congregation v. DeLeo
No promise; A did not
Gifts may be unenforceable Condition to expect reliance on “it”;
even w/o any conditions Allegheny v. National
Receive a Gift B’s understanding of
(Unenforceable) situation unreasonable Bilateral agreement
can be enforceable
even if one promise
Unenforceable Detriment not Bargained for by Enforceable
is only implied in fact
1) A has a gift-making state of mind A to B (AKA Gratuitous Promise) 1) A has a contract-making state of mind
from conduct
2) A only benefits from altruism/pleasure, etc. 2) A will receive a material/selfish benefit
Ex.) “If it rains tomorrow, I will give you $10.” Ex.) “You can come live in my house as a housekeeper”