BU111 Lecture Notes - Lecture 14: Life Insurance, Settlor, Beneficial Ownership
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BU111 Full Course Notes
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Consideration: sufficient and adequate consideration, past consideration, pre-existing obligations, promises enforceable without consideration. Privity of contract: assignment, trusts, statute, employment. In other words, both parties must either: make a promise to provide benefit to someone; (not necessarily the other party to the contract); or promise to suffer detriment to self. If i pay as promised to your brother, but you fail to transfer the car to my sister, as promised, i can sue you for breaching the contract. However, my sister is not a party to this contract (she lacks privity so she can"t sue you for breaching the contract). If you want to exchange a peppercorn for a horse, it"s foolish, but it"s an enforceable contract: consideration is not adequate but that"s ok, because consideration need not be adequate. Susan agrees, takes the ,000 and signs a release, dropping her lawsuit. Later, she changes her mind and files another lawsuit.
