Contracts I Consideration Consideration is a bargained-for exchange of a promise for a performance or a promise for a promise.
Restatement Second of Contracts § 71
Requirement of Exchange ; Types of Exchange
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To constitute consideration , a performance or a return promise must be bargained for.
A performance or return promise is bargained for if it is sought by the promisor in exchange for his promise and is given by the promisee in exchange for that promise .
The performance may consist of
an act other than a promise , or
a forbearance, or
the creation, modification, or destruction of a legal relation.
The performance or return promise may be given to the promisor or to some other person. It may be given by the promisee or by some other person.
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Restatement Second of Contracts § 73
Modification of Executory Contract
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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.
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Consideration requires each person's promise or performance to induce the other's.
There is no requirement for the adequacy of the values exchange d, as long as it is more than a mere pretense of bargain.
Gratuitous promise s, including conditional gifts are not enforceable.
Motive is not considered as long as the exchange was bargained for.
Illusory promise s and alternative promise s are not enforceable.
Restatement Second of Contracts § 77
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A promise or apparent promise is not consideration if by its terms the promisor or purported promisor reserves a choice of alternative performance s unless
each of the alternative performance s would have been consideration if it alone had been bargained for; or
one of the alternative performance s 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.
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