Agreements Lacking Consideration: Gift Promises
This lesson takes a look at one type of agreement that lacks consideration: gift promises. Consideration is often described as the bargained-for-exchange. The bargained-for-exchange is what induces the making of the promise by the offeror and the promise induces the furnishing of the consideration by the offeree. Consideration is the ordinary means for justifying the enforcement of the promises by the parties. Where a gift is made, bargained-for-exchange is lacking and the promises are not enforceable. This lesson sets out the basic requisites for identifying and evaluating a gift promise. The general attributes of consideration are covered in other lessons.
On completion of the lesson, the student will be able to:
1. Distinguish between a bargained-for exchange and a gift promise.
2. Distinguish between a gift promise and a gift.
3. Explain when charitable promises are enforceable.