LAW 505-002 – Contracts I
Restatement Second of Contracts § 71
Requirement of Exchange; Types of Exchange
- 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.