Obviously Bogus Bargain - If I promise to pay you $600 and you, in return, promise to pay me $.01, is our bargain genuine or bogus? It’s obviously bogus. Thus, there is no consideration for my promise to pay you $600 and hence my promise is not enforceable.

But these are easy facts that lead to an obvious conclusion. What should one look for to assess whether the bargain was genuine or bogus?

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This content is drawn from our Contracts Consideration Tutorial 2: Bogus Versus Genuine Bargains, which contains numerous interactive and visual hypotheticals on the topic. If you are interested in this content, you may want to try our free Contracts Advisor Course. You will need to register for our free account. It's fast, easy and, of course, free.
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Personal and Private / Difficult to Verify Reliably - A good way to start is by ruling out situations in which the proffered form of consideration (e.g., expressions of gratitude, or public acknowledgments of affection) is so private and personal that courts can’t reliably verify whether the consideration is sincere.

Sufficiency of Consideration - But what about situations that involve a commercial exchange between parties but also reflect terms that, at least on their face, suggest the possibility that the bargain was not genuine? These situations require a closer look.

Conclusion – As we indicated in the companion post, the doctrine of consideration is such a rich – and sometimes tangled - topic that we devote seven tutorials to sorting it out. But don’t fret; the rules are all common-sensical. And – with help – you’ll understand them and be able to apply them just fine.

For these and other topics, go to The Law School Experience.