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A release, to be valid, must be supported by consideration. Consideration consists of bargained-for exchange.
When David Bogigian and Hazel Bogigian’s marriage was dissolved, Hazel was given a judgment on the family home. When the house was sold, Hazel attended the closing and signed several documents including a quit claim deed and a release of her judgment against David. David paid Hazel her share of the proceeds of the sale, and Hazel filed an action to satisfy the remainder of the judgment. The trial court held that the release executed by Hazel was voidable for lack of consideration, and reinstated the judgment.
Was the trial court correct in holding that the release executed by Hazel was voidable for lack of consideration?
The appellate court held that the release was voidable because Hazel did not receive any consideration for the release. David failed to prove estoppel because the parties did not bargain for the release, and there were no representations made concerning the release.