Class Notes (1,100,000)
CA (630,000)
Ryerson (30,000)
LAW (1,000)
LAW 122 (800)

LAW 122 Lecture Notes - Estoppel, Counterclaim

Law and Business
Course Code
LAW 122
Jane Monro

This preview shows pages 1-2. to view the full 6 pages of the document.
Chapter 8
Gratuitous Promise: is a promise for which nothing of legal value is given in exchange
Consideration: Exist when a party either gives (Or promises to give) benefit to someone else or suffer (
or promises to suffer) a detriment to itself.
Bargain involves offer, acceptance and mutal exchange of value.
Sufficient and Adequate Consideration
Sufficient consideration: May be almost anything of value.
Example: sufficient if a person promises to give up smoking drinking or swearing.
EXCEPTION TO THE RULE: Love and affection
Example: if an elderly gentleman promise to pay 10,000 to wayward niece in exchange for her promise
to “always be kind and caring” the parties will NOT have a contract.
Adequate Consideration: has essentially the same value as the consideration for which it is exchanged
Example: if you promise to give me a computer worth $5,000 and I promise to give up smoking drinking
and swearing, this is a bad bargain. NOT adequate consideration. Enforceable
Past Consideration
Mutuality of Consideration: required that each party provide consideration in return for the other
Past Consideration: consists of something a party did prior to the contemplation of a contract.
Example: If a company worked on a lawn before you lived there and you loved it and you
promised to pay them $250, you would not have to pay because it was not a contract because
they did this before you promised to pay
EXPECTION TO THE RULE: IF YOU see the company and ask them to work on your lawn and they
accept and after they are finished you say you will promise to pay 250 you are have to because a
reasonable person would expect you to pay. A reasonable price of course

Only pages 1-2 are available for preview. Some parts have been intentionally blurred.

Promises enforceable without consideration
Seal: is a mark that is put on a written contract to indicate a party’s intention to be bound by the terms
of that document. Even though the other party may not have given considerations.
Example: A bank may be willing to lend you money but only you garuntee my loan by promising to pay
back if I fail to do so. The loan agreement is between me and the bank and you take no benefit. The
bank therefore more likey require you to put your promise under seal, the guarantee will then be
enforceable even if you receive no consideration.
Promissory Estoppel
Estoppel: is a rule that precludes from disputing or retracting a statement that they made earlier.
Example: suspose you trick me into building a house on your property by saying that the land is mine.
When I complete the project, the law will not allow you to unfairly assert your ownership in the
property. You will be Estopped from denying the truth or your earlier statement.
Promissory estoppel: Is a doctrine that prevents a party from retracting a promise that the other party
has relied upon.
Case Brief 8.4 example and
The doctrine of promissory estoppel will apply only if four requirements are met. Page 186
Privity of Contract
Consideration is necessary for the creation of a contract.
Privity of a contract identifies the people who can be involved in the enforcement of a contract.
Stranger: is someone who did not participate in the creation of the contract
Privity of contract: Doctrine refers to the relations that exist between the individual who create a
You and I cannot impose an obligation on someone who is not generally cannot take
advantage of it
Someone who is not part of the agreement generally cannot take advantage of them.
Inly those people are parites to the agreement and in most situation only parties can sue or
be sued on the contract
Exception to Privity of contract:
Assignment *trust * statue* employment
You're Reading a Preview

Unlock to view full version