This lesson addresses a number of issues involving consideration, including whether there was a bargain, whether there is consideration for the settlement of a claim, and whether one of the promises was illusory. You should run it after you have run the lesson on Consideration: The Basics of Consideration and the Bargain Theory.
On completion of the lesson, the student will be able to:
1. Distinguish between situations where consideration is bargained-for and situations where it is not.
2. Explain when there is consideration for release of an invalid claim.
3. Distinguish between illusory contracts and a) satisfaction clauses, b) implied obligations, and c) output and requirements contracts.