Term
| True or false: The performance of a condition on a purely gratuitous promise is not consideration. |
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Definition
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Term
| True or false: Under the majority rule, a charitable subscription is binding under promissory estoppel without proof that the promise induced detrimental reliance, as long as the other elements of promissory estoppel are established. |
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Definition
| False. That is the minority rule. Under the majority rule, for a charitable subscription to be binding under promissory estoppel, each of the elements of promissory estoppel must be established. In other words, a promise to a charity is not given special treatment. |
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Term
| Conditions on promises of gifts usually come in what two varieties? |
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Definition
| A restriction on how the recipient makes use of the gift or what the recipient does with the gift, and something the recipient must do to obtain possession of the gift. |
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Term
| Is a promise to accept a gift, or accepting the gift, consideration for the promise to give the gift? |
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Definition
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Term
| What factors will a court apply in deciding whether something is a mere condition on a gratuitous promise or consideration? |
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Definition
| (1) Whether the performance of the condition benefits the promisor and, if so, the extent of the benefit; (2) the difficulty involved in performing the condition; (3) the extent to which the condition is related to the promise; and (4) the extent of discretion left with the promisee with respect to the use of the promised item. |
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Term
| Is there consideration for a promise of a prize as part of a contest? |
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Definition
| Yes. Performing the act necessary to win the prize is consideration for the promise. |
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Term
| Is there consideration for a prove-me-wrong promise? |
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Definition
| Yes. Proving the promisor wrong is consideration for the promised amount. |
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Term
| Is consideration necessary to make the delivery and acceptance of a gift effective? |
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Definition
| No. Once the gift is delivered and accepted, the promise is performed, and ownership of the property transfers under property law despite there never having been a contract or a legally-binding promise to perform. |
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