consists of either a benefit to the promisor or a detriment to the promise
two types: legal benefit and legal detriment
Legal Benefit
obtaining something to which one had no prior legal right
Legal Detriment
doing an act one is not legally obligated to do or not doing an act that one has a legal right to do
Adequacy
not required where the parties have freely agreed to the exchange
illusory promise
promise that imposes no obligation on the promisor
not including: output contract, requirements contract, exclusive dealing contract, or conditional promise
output contract
agreement to sell all of one's production to a single buyer
requirements contract
agreement to buy all of one's needs from a single producer
exclusive dealing contract
grant to a franchisee or a licensee by a manufacturer producer
conditional promise
one where the obligations are contingent upon the occurrence of a stated event
preeexisting public obligations
public duties such as those imposed by tort or criminal law are neither a legal detriment nor a legal benefit
preexisting contractual obligation
performance of a preexisting contractual duty is not consideration
modification of a preexisting contract
under the common law a modification of a preexisting contract must be supported by mutual consideration; under the Code a contract can be modified without new consultation
substituted contracts
the parties agree to rescind their original contract and to enter into a new one; rescission and new contract are supported by consideration
settlement of a disputed debt
payment of a lesser sum of money to discharge a disputed debt (one whose existence or amount is contested) is legally sufficient consideration
Bargained-for exchange
a mutually agreed-upon exchange
past consideration
an act done before the contract is made is not consideration
promise to pay debt barred by the statute of limitations
a new promise by the debtor to pay the debt renews the running of the statute for a second statutory period
promise to pay debt discharged in bankruptcy
may be enforceable without consideration
voidable promises
a new promise to perform a voidable obligation that has not been previously avoided is enforceable
moral obligation
a promise made to satisfy a preexisting moral obligation is generally unenforceable for lack of consideration
promisory estoppel
doctrine that prohibits a party from denying her promise when the promisee takes action or forbearance to his detriment reasonably based upon the promise
promises under seal
where still recognized, the seal acts as a substitute for consideration
promises made enforceable by statute
some gratuitous promises have been made enforceable by statute; the Code makes enforceable (1) contract modifications, (2) renunciatjions, and (3) firm offers