Contracts Cases

Aunt wrote promissory note for $3000 to nephew for value received. Rule: Valid contract requires consideration (the bargain element).

Consideration based upon something of fixed value (e.g., money) may be merely nominal and, thus, not legally binding. Past considerations are insufficient for a legally enforceable contract.

A mere gratuitous promise is without the consideration necessary for enforcement as a contract.

Woman was promised $200/month upon retirement. Pfeiffer tried to argue that it was a gratuitous promise. A promise that (1) the promisor should reasonably expect to be relied upon by the promisee and (2) is so relied upon (i.e., induces action or forbearance) by the promisee and is binding and enforceable under promissory estoppel if injustice can only be avoided through enforcement of the promise.

...

Promissory estoppel does not provide for expectancy damages (i.e., of lost future wages) but does provide for reliance damages.

Restriction of the promisee's lawful freedom of action is sufficient consideration for the promise. (Similarly, injury incurred by the promisee may be a sufficient, but not necessary, condition of consideration.)