Exam 6: Formation of a Contract: Consideration and Intention

Estoppel or promissory estoppel was developed to overcome the principle that payment of a lesser sum in satisfaction of a greater sum is no payment at all.

Where there is an existing contract between two parties and one party,to ensure performance by the other,promises something more,so long as the other party also gives something more,there is a binding contract and the first party must perform the new promise.

Motive is irrelevant to consideration.Explain.

Use the fact situation in Q10 to answer the related question that follows. The principle of law that arises out of the fact situation above was meant to overcome an earlier principle of law that stated that

The contractual requirement of consideration provides that

Even when offer and acceptance and consideration are present,there may be no enforceable contract if

Where there is an existing contract between two parties and,to ensure performance,one party promises to give more consideration than under the original contract,the new promise is binding and must be performed.

The reasonable bystander test is

Use this fact situation to answer the related questions that follow. On June 1,A,a debtor,loans $5000.00 from B,a creditor,and agrees to repay it by December 1 of the same year.On November 1,B says to A,"Rather than paying me the full $5000.00,just pay me $3500.00 and your debt will be cancelled." A pays the $3500.00,but B now changes his mind and tells A that he wants A to pay him the balance of $1500.00. In this situation at common law,

A document made under seal does not require consideration.

Mo agrees to provide lawn care services to Judith in preparation for a summer birthday party Judith is holding for family and friends.The agreement requires that Judith pay Mo $250.00 for three hours' work.After completing approximately half of the job,Mo requests that Judith pay him an extra $50.00 because the cost of gasoline used for the rider mower had gone up significantly that morning.Judith agrees to pay the additional $50.00.Is she legally liable to do so?