-the 4th element of a K

-Agreement between

-Refraining from doing something

-Key word IF

-Promise for a promise

Benefit received by the promisor and a determent incurred by the promissee

ex: I will pay you $300 IF you paint my house.

Doesn't matter whether the contract is fair in return. 

-unequal amount of same thing are not consideration

(1 bushel of apple for 2 bushels of apples)

Agreement to not act.

Refraining from doing that which you have a legal right to do. 

-form of consideration

Promise that doesn't actually impose any obligation on the promisor.

Both partes are not bound. He has received no consideration

Enforce a second promise when there are extraordinary circumstances caused by unforseeable difficulties. You can make an adjustment to a sale if it is in writing. 

Ex: construction contract 

Outside reasonable expectation of the parties.

AKA: will do your best to not "leave" a contract for dumb reasons.

Split the difference on the agreement.

Promise to pay part of an amount on a debt that is already owed. Not consideration. 

Substitute for consideration. Based on equity. "Promise without the IF"

1. Promisor makes promise that lacks consideration

2. Promisor intends the promisee will rely on the promise.

3. Promisee relies on the promise.

4.Enforcement of the promise is the only way to avoid injustice.

Equally guilty.

When parties are NOT, the least guilty party is granted relief when doing so advances public interest.  

A form of duress.

Economic duress for consumers. 

Unconsionability

(2 parts)

A provision in a K that may give what courts believe too much of an advantage over a buyer. 

1. Clause (unconscionable)

2. Doctrine of Unconsciability

Matters of freedom of assent resulting from inequality of bargaining power. Hiding a disputed term in unduly long fine print. 

(hiding something in K that shouldn't be there...)

K offered by a dominant party to a party with inferior bargaining power on take it or leave it basis. 

Procedurally unconscionable.

"take it or leave it"

State rendered allowing certain professions to practice. If profession requires license and you don't have once, services are void (uncollectible) if license is only for generating revenue, then it is not void. 

Need license or VOID

Scope

(WHAT)

1. Time

2. Distance

3. Breadth

1. Employment Contracts

2. Sale of Business

Regulations on Agreements

(2 LIST)

Usury

Time-Price Differential

Lending money at an interest rate that is higher then the max rate allowed by law. All states have these laws. 

-punitive damages: if usury law is exceeded, you lose what you gained.

ex: a broke student goes to a furniture store (big sale). Finds a $1500 couch for $1000. Asks uncle to pay, the student pays him back $100 a month for 12 months. (LENT YOU MONEY)

Most states don't treat it as usury. Difference between time price payments and cash.

-It's the exception

ex: a broke student goes to a furniture store (big sale). Finds a $1500 couch for $1000. Student goes to the business credit people and they set you up on a credit plan. You pay them $100 every month for 12 months. (THEY DIDN'T LEND YOU $)