... must also involve a detriment to the promisee of a benefit to the promisor.7 There will be no bargain if an exemption clause excludes the promisor's liability.8 Courts focus on formal equivalency (sufficiency in law) and not actual equivalency (material equality).9 Parties are free to 'make bad bargains.'10 Restrictions on what can constitute good consideration include: 1. Any act performed / not performed as consideration must be lawful.11 2. Performance of an existing legal duty is no consideration.12 (Exceptions are if there is an honest belief that one has a legal right to relinquish a legal claim, as long as the claim is not 'vexatious or frivolous',13 and if performance of existing legal duty has 'practical benefits'.)14 3. Past consideration is no consideration15 unless services were undertaken on the basis that later payment was expected.16 4. Consideration must not be illusory.17 If two parties wish to enter into an agreement which does not involve a ...

See this essay or coursework document in full right now