Class Notes (808,131)
Canada (493,086)
MGSC30H3 (54)
J.Rybak (11)

Chapter 8 Consideration 1.docx

2 Pages
Unlock Document

University of Toronto Scarborough
Management (MGS)

Chapter 8 Consideration Nature of Consideration  Consideration: something that has value in the eyes of the law, and which a promisor receives in return for a promise o Examples: payment of money, performance of a service, promise not to do something, relinquishment of a right, delivery of property ,or even a promise in return for a promise  A gratuitous offer of a service, if accepted, must be performed with care and skill; otherwise, the promisor will be liable for any loss suffered as a result of careless performance or negligence. o This liability, however, would not flow from any breach of contract but, rather from the tort committed.  A person may be liable for a promissory note, or other negotiable instrument, to a subsequent endorser, even though no consideration exists between them  If the rule relating to consideration is strictly applied to a promise of a donation to charity, the agreement would not be enforceable, as the promise would be gratuitous Seal as Consideration  Seal: a formal mode of expressing the intention to be bound by a written promise or agreement. This expression usually takes the form of signing or affixing a wax or gummed paper wafer beside the signature, or making an engraved impression on the document itself o if seal is present, document is a formal agreement that the court can enforce o over time, became less formal  the binding effect of a formal contract under seal, however, persists today Tenders  The tender process usually involves the advertisement of the particular needs of the firm to potential suppliers of the goods or services, either by way of newspapers or by direct mail contact. o Merely an offer to negotiate a contract o The firm making the call to tender is not bound to accept the lowest offer nor, for the matter, any of the offers.  An offer made in response to the call may be revoked at any time before acceptance o call for tenders frequently requires offerors to submit their offers as irrevocable offers under seal Adequacy of Consideration  in general, the courts are not concerned about the adequacy of consideration because they are reluctant to become involved as arbiters of the price or value that a person receives for a promise  main concern is with the presence or absence of consideration, rather than with whether the promisor received proper compensation for his or her promise The Click as Consideration  The click will become the new seal when it is tested
More Less

Related notes for MGSC30H3

Log In


Don't have an account?

Join OneClass

Access over 10 million pages of study
documents for 1.3 million courses.

Sign up

Join to view


By registering, I agree to the Terms and Privacy Policies
Already have an account?
Just a few more details

So we can recommend you notes for your school.

Reset Password

Please enter below the email address you registered with and we will send you a link to reset your password.

Add your courses

Get notes from the top students in your class.