The Lonely Mountain — What Was Bargained For, Promised, and Owed
At the Lonely Mountain, questions of value take center stage. Smaug sits atop treasure he did not earn. Bilbo finds the Arkenstone and must decide what promises bind him — and what happens when a promise induces reliance without a bargain.
Module III introduces consideration (Chapter 7) — the doctrine that a promise is enforceable only when supported by a bargained-for exchange. When consideration fails, two safety nets may apply: promissory estoppel (Chapter 8), which enforces promises that induce reasonable and foreseeable reliance, and promissory restitution (Chapter 9), which prevents unjust enrichment from unrequested benefits.
Module outcomes
By the end of this module, you can:
- State the bargained-for-exchange test under R2d § 71 and apply it to identify whether a promise is supported by consideration.
- Recognize legal detriment as a form of consideration — including forbearance from a legal right (Hamer v. Sidway) — and distinguish it from gratuitous benefit.
- Apply R2d § 90 to promises that induce reasonable reliance and decide when promissory estoppel makes an otherwise unenforceable promise binding.
- Distinguish past consideration (unenforceable, Mills v. Wyman) from moral obligation following material benefit conferred (enforceable under R2d § 86, Webb v. McGowin).
- Evaluate borderline cases of nominal, sham, or illusory consideration and explain why the law looks at the structure of the exchange rather than the adequacy of the bargain.
Chapters
7 Consideration The Dragon's Hoard
8 Promissory Estoppel The Arkenstone
9 Promissory Restitution Battle of Five Armies