LAW 122 Lecture Notes - Himalaya Clause, Estoppel
27 Nov 2012
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Document Summary
A contract cannot usually exist without an exchange of value. A promise for which nothing of legal value is given in exchange. For a contract to be legally acceptable it must have consideration. Consideration: exists when a party either gives (or promises to give) a benefit to someone else or suffers (or promises to suffer) a detriment to itself. A contract must be supported by sufficient consideration: Sufficient consideration: may be almost anything of value. Although consideration must be sufficient, it does not have to be adequate. Adequate consideration: has essentially the same value as the consideration for which it is exchanged. Forbearance to sue: a promise to not pursue a lawsuit. A contract must also have mutuality of consideration. Mutuality of consideration: requires that each party provide consideration in return for the other party"s consideration. Past consideration: consists of something that a party did prior to the contemplation of a contract.
