Exercise1: There are 4 reasons why an agreement would lack consideration. Your assignment is to submit a factual example for each of the four reasons and to correctly identify which of the four reasons the factual situation addresses. In other words, ..."This agreement lacks consideration because of the rule of __________________ . Thus, your assignment would appear as follows: A and B agreed to __________________. A promised to ___________ and B ________________. This agreement would not be enforceable because it lacks consideration. It lacks consideration because ________________ (an you must identify which of the legal principles applies).
Exercise2: There exist theories in contract law that would allow a party to enforce a promise and or agreement even though it that lacked consideration. Your assignment is to list a fact situation for each individual theory and identify the theory. Thus, your assignment would appear as follows: A and B entered into an agreement that could not be enforced because it lacked consideration due to the fact that ___________. However, according to the theory of ____________ , _____ would be able to enforce the agreement. This theory requires that _____ prove the following: ____________________________.
An offer must bargain for something in return, and that which is bargained for in return must be provided by the offeree in order that there exist consideration.
Exercise3: The Nature of Consideration
Can you identify the THREE GENERAL CATEGORIES that the offeror bargains for? Here''s a hint - it has to do with whether the offer is bilateral or unilateral.
Exercise4: The Nature of Consideration
It often occurs that an offeror bargains for the offeree to perform a task that the offeree is already duty-bound to perform, or is not legally permitted to perform, or has already performed. If this be the case, then what is being requested from the offeree has no legal value. Can you identify the cases in the text in which the offeror has not bargained for legal value?
Exercise5: Available Theories if Consideration is Lacking
Assume that the agreement between the parties lacks consideration because either the offeror or offeree has not provided legal value to the other. Can you identify any of the legal theories that a court would apply so that the agreement would be enforceable even though there was no legal value on both sides. There are several such theories.
Exercise6: Subsequent Contracts
It is not unusual for two parties to form an agreement and then form a second agreement which relates, in part to their first one. When this occurs, the issue of legal value generally surfaces because of the obligations and rights the parties create in their initial contract. Are you able to identify all of the subsequent contracts and recognize whether each has legal value to both parties?
Exercise7: List the ways by which a party to a contract can cause a fraudulent misrepresentation to occur. Give an example for each way that you list.
Exercise8: List the ways by which a party to a contract can cause an innocent misrepresentation to occur. Give an example for each way that you list.
Exercise9: Identify the similarities and the differences between fraud, misrepresentation and mistake.
Exercise10: Give three examples of why a party would be required to voluntarily disclose information to the other contracting party.
Exercise11: Give five examples of contracts between a minor and an adult that would result in a judge ruling that the minor could not avoid the contract. Explain the minor's duty to make restitution to the adult (when avoiding the contract). Also explain how the common law and modern law differ with regard to the minor's duty to make restitution.