Restatement (Second) of Contracts · Section § 73
This section addresses the concept of performance of a legal duty as consideration in contract law, particularly when the duty is already owed.
Source: Restatement Restatement (Second) of Contracts § § 73
Performance of a legal duty owed to a promisor is not consideration for a return promise.
Section 73 establishes that merely fulfilling a legal obligation does not constitute valid consideration for a new promise. This means that if you are already required to do something by law or prior agreement, doing that same thing cannot be used as the basis for a new contract.
This section clarifies the principle that consideration must involve something more than simply doing what one is already obligated to do.
The focus is on the requirement that promises must be supported by consideration that goes beyond pre-existing duties.
Illustration 1
A contractor is obligated to complete a construction project. If they demand an additional fee to perform the same work already agreed upon, that fee is not considered valid consideration under § 73.
Illustration 2
If a police officer promises a reward for catching a criminal, the officer's duty to enforce the law does not constitute valid consideration for the promise of a reward.
This case illustrates § 73 as the court held that a promise to pay more for completed work was unenforceable due to a pre-existing legal duty to perform the work.
Section 73 emphasizes the need for valid consideration in contract law, preventing parties from leveraging existing obligations to gain additional benefits. This principle is crucial in negotiations and contract formation, ensuring that both parties are providing something new or additional in their agreements.