The book states consideration is a value given in return for a promise or performance. The consideration, which must be present to make the contract, legally binding, must be something of legally sufficient value and bargained for. It's a bilateral contract it normally consists of a promise in return for a promise.
Example: Lets say your mother asks you to mow her lawn and clean her house and when you complete these task she will then pay you $75 for the deed.
Situation involving "past consideration", pre-existing legal duty, forbearance to sue, and moral obligation.
A.Sara is a real estate agent, does her friend Erin a favor by selling her house and not charging any commission. Later Erin says to Sara, " In return for you generous act I will pay you $3,000." This promise is made in return for past consideration in effect. Erin is stating her intention to give Sara a gift.
B.A sheriff cannot collect a reward for providing information leading to the capture of a criminal if the sheriff already has legal duty to capture the criminal. Pre-existing legal duty may be imposed by law or may arise out of previous contract.
C. Employment contracts requiring employees to not enter into the employment of competitors after separation is forbearance to sue. Forbearance to sue is refraining from any legally permitted action or right in exchange for consideration.
D.If your mother or father were to get sick, you as the child feels they must take care of the parents. Give them medicine and food when they need it. They feel this way because when you were younger they did the same for you therefore this falls under the category of moral obligation.
Defenses to a contract:
The requirements of a valid contract consist of an agreement,