LAW 122 Lecture Notes - Lecture 25: Estoppel, Betta
1 Oct 2017
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Document Summary
As a general rule, a promise is enforceable only if it was given in exchange for consideration. In other words, a promise is normally effective only if it was purchased. The law of contracts is based on that commercial paradigm. And within that paradigm, the courts are not concerned with the adequacy of consideration as long as there is sufficient consideration, the courts are willing to assume that each party was capable of protecting its own interests. A gratuitous promise (ie one that is not supported by consideration), of course, stands outside of that paradigm. Such a promise nevertheless is enforceable if the promisor placed it under seal. A seal is not consideration, but it provides a sufficient proxy for consideration. While they have been reduced in modern times, the formalities associated with a seal alert the promisor to the fact that it may be giving up something for nothing.
