EXAMPLES OF VALID AND SUF FICIENT CONSIDERATIONS. The following are held to be valid and sufficient considerations: (a) The prevention of litigation, as the mutual submission of a controversy to arbitration, both being bound, the mu tual promises being a consideration each for the other; (b) a compromise when mutual; and the courts will not enter into and estimate the value of the different claims submitted. as the law favors the settlement of disputes (Hodges v. Saunders, 17 Pick. 470); (c) a promise to pay a debt if proved, or to pay a debt if the party would swear to it, where it has been denied; and in this case the fact that the party swore falsely is no defense (Brooks v. Ball, 18 Johns. 337); (d) a liability incurred by reason of the promise of another; (e) a promise to do a thing which the party is under legal obligation to do.
So the assignment of a debt or engagement is a good consideration for the promise of the assignee, but if the assignment is illegal or void for any reason, as in fraud of creditors, the promise fails, because of failure of consideration. And this is true, in general, in every case of failure of consideration, except in the case of negotiable instruments which have passed into the hands of a bone fide holder for value.
A surrender of a suit or proceeding to try a disputed legal question is a good consideration for a promise to pay a sum of money for so doing, and in these cases mere inequality of consideration does not constitute a valid objection. But if the promise was to pay money to abandon a suit in which the public are interested, it is not enforceable, as such a promise would be against public policy. (I Pars. Cont. 440.)