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Agreements WithoutConsiderationEnforceable AgreementsWithout ConsiderationIn most situations, a contract is invalid if it does not includeconsideration. However, there are some agreements in which therequirement of consideration is eliminated. This is true despite the factthat these agreements may appear to offer the necessary element ofconsideration.Some courts have chosen to eliminate the requirement of considerationin certain kinds of agreements. As is often the case, it is difficultto generalize about such things because states differ in the rules theyapply to promises made in such agreements. Nevertheless, we can discusssome of the most common agreements that fall into this category:promises under seal, promises after discharge in bankruptcy, debtsbarred by the statute of limitations, promises enforced by promissoryestoppel, and options.l How to identifyagreements that areenforceable withoutconsiderationl How to explain thelegal concept ofpromissory estoppell How to identifyagreements that arenot enforceablewithout considerationl How to distinguishbetween pastconsideration andpreexisting dutiesPromises Under SealA seal is a mark or an impression placed on a written contractindicating that the instrument was executed and accepted in a formalmanner. Today, most of the states that still require a seal will permit theseal to be indicated by the addition of the word “seal” or the letters L.S.(locus sigilli, which translates to “place of the seal”) after the signatureof a party.Using a seal in sale of goods contracts is not required by the UCC.However, some states still require the use of a seal in contracts involvingreal property and in certain other contracts specified by law. Becausethe law varies so much from state to state, it’s a good idea toresearch individual state requirements.Promises After Discharge in BankruptcyIt is possible for a person who has had his or her debts dischargedin bankruptcy to decide to pay such debts voluntarily. To prevent abuseby creditors who might pressure debtors into making such promises,Congress reformed the law governing bankruptcy. Court hearings mustnow be held when the reaffirmation of a debt is intended. In theseUnderstanding thedifference betweencontracts that requireconsideration and thosethat do not will enableyou to avoid commonproblems associatedwith consideration orthe lack thereof.l seall promissory estoppell optionl firm offerl illusory promisel past considerationl preexisting dutyChapter 8: Consideration 173