73 Performance of Legal Duty see also Formation
Performance of a legal duty owed to a promisor which is neither doubtful nor the subject of honest dispute is not consideration; but a similar performance is consideration if it differs from what was required by the duty in a way which reflects more than a pretense of bargain.
74 Settlement of Claims see also Formation
1. Forbearance to assert or the surrender of a claim or defense which proves to be invalid is not consideration unless
- the claim or defense is in fact doubtful because of uncertainty as to the facts or the law, or
- the forbearing or surrendering party believes that the claim or defense may be fairly determined to be valid.
2. The execution of a written instrument surrendering a claim or defense by one who is under no duty to execute it is consideration if the execution of the written instrument is bargained for even though he is not asserting the claim or defense and believes that no valid claim or defense exists.
75 Exchange of Promise for Promise see also Formation
Except as stated in §§ 76 and 77, a promise which is bargained for is consideration if, but only if, the promised performance would be consideration.
76 Conditional Promise see also Formation
1. A conditional promise is not consideration if the promisor knows at the time of making the promise that the condition cannot occur.
2. A promise conditional on a performance by the promisor is a promise of alternative performances within § 77 unless occurrence of the condition is also promised.
77 Illusory and Alternative Promises see also Formation
A promise or apparent promise is not consideration if by its terms the promisor or purported promisor reserves a choice of alternative performances unless
- each of the alternative performances would have been consideration if it alone had been bargained for; or
- one of the alternative performances would have been consideration and there is or appears to the parties to be a substantial possibility that before the promisor exercises his choice events may eliminate the alternatives which would not have been consideration.
78 Voidable and Unenforceable Promises see also Formation
The fact that a rule of law renders a promise voidable or unenforceable does not prevent it from being consideration.
79 Adequacy of Consideration; Mutuality of Obligation see also (Formation)
If the requirement of consideration is met, there is no additional requirement of
- a gain, advantage, or benefit to the promisor or a loss, disadvantage, or detriment to the promisee; or
- equivalence in the values exchanged; or
- "mutuality of obligation."
80 Multiple Exchanges see also Formation
1. There is consideration for a set of promises if what is bargained for and given in exchange would have been consideration for each promise in the set if exchanged for that promise alone.
2. The fact that part of what is bargained for would not have been consideration if that part alone had been bargained for does not prevent the whole from being consideration.
81 Consideration as Motive or Inducing Cause see also Formation
1. The fact that what is bargained for does not of itself induce the making of a promise does not prevent it from being consideration for the promise.
2. The fact that a promise does not of itself induce a performance or return promise does not prevent the performance or return promise from being consideration for the promise.
86 promise for benefit received see also Formation
1. A promise made in recognition of a benefit previously received by the promisor from the promisee is binding to the extent necessary to prevent injustice.
2. A promise is not binding under Subsection (1)
- if the promisee conferred the benefit as a gift or for other reasons the promisor has not been unjustly enriched; or
- to the extent that its value is disproportionate to the benefit.
87 Option Contract see also Formation
1. An offer is binding as an option contract if it
- is in writing and signed by the offeror, recites a purported consideration for the making of the offer, and proposes an exchange on fair terms within a reasonable time; or
- is made irrevocable by statute.
2. An offer which the offeror should reasonably expect to induce action or forbearance of a substantial character on the part of the offeree before acceptance and which does induce such action or forbearance is binding as an option contract to the extent necessary to avoid injustice.