Exam 14: Consideration

In a composition of creditors, the various creditors of a single debtor mutually agree to accept a fractional part of their claims in full satisfaction of the claims.

In the case of unforeseen difficulties, a second promise to pay a contractor a higher amount on the original contract may be enforceable.

In most states, promises made to another based on moral obligation lack consideration and are not enforceable.

The fact that the consideration supplied by one party is slight when compared with the burden undertaken by the other party is immaterial.

Examples of illusory promises include:

Ordinarily, a promise to perform an existing legal obligation is:

Under the doctrine of promissory estoppel, a promisor may be prevented from asserting that his or her promise is unenforceable because the promisee gave no consideration for the promise.

When a debtor tenders a check stating "paid in full" and the creditor cashes the check, the debt:

Past benefits already received by a promisor cannot be consideration for a later promise.