BSEN 395 Lecture Notes - Lecture 2: Bargaining, Efficiency Ratio, Estoppel

• School: University of Calgary
• Department: Business and Environment
• Course: BSEN 395
• Professor: Rob Malach

Document Summary

Something that has value in the eyes of the law. What a party gets in return for their promise. Consideration must be something done for the promise given. Ge(cid:374)e(cid:396)al (cid:396)ule is (cid:862)(cid:374)o co(cid:374)side(cid:396)atio(cid:374) = (cid:374)o co(cid:374)t(cid:396)act(cid:863) Subject to some historical exceptions (coming up) Cou(cid:396)ts usually do(cid:374)"t get i(cid:374)to the a(cid:374)alysis of ade(cid:395)uacy of co(cid:374)side(cid:396)atio(cid:374)- it general exists o(cid:396) it does(cid:374)"t. The promisor must get something in return for the promise or the promise is merely gratuitous. Gratuitous promise is not enforceable under law. Gratuitous services: must be performed with care and skill (negligence still applies sue in tort not contract) Negotiable instruments: one is still liable on a check or note, and to subsequent endorsers even though no consideration exists. Charitable donations: most charitable donations are gratuitous promises. A formal mode of expressing the intention to be bound by a written promise or agreement. A major exception to the rule of consideration.