Review Questions

1. Consideration is the exchange of benefits and detriments by the parties involved in a contract.
2. A promise of a gift is not enforceable because benefits and detriments aren’t being exchanged. The gift is considered property of the party that received the gift.
3. The courts will not enforce a contract that is based on past consideration because the exchanging of benefits and detriments did not occur when the contract was made.
4. The courts do not enforce social agreements because it lacks consideration.
5. No, they usually do not base enforcement of a contract on whether the contract is fair or not, unless the contract is one sided and is very inadequate.
6. The court may void the contract if it is found to be unconscionable.
7. Pledges, subscriptions to charities, and promissory estoppel because they influence the actions and behavior of others.
8. The three conditions that must be met before the principle of promissory estoppel can be applied are:
   • Promise must be made to bring about action of forbearance by another person who gave no consideration.
   • One who gave no consideration must have relied on the promise and changed his or her position in a significant way.
   • Injustice can be avoided only by enforcing the promise.
9. The full amount of a debt must be paid no matter what, unless a document is written, signed by both parites, and sealed in some states.