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Valerie Irie (103)

K Law - Formation2.docx

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Valerie Irie

Consideration: -two way promise -give and take, giving something and getting something back -one party performing, that’s the price -make sure there is a promise for a promise -price of contract is interest (pony story) -court does not care if you make a bad bargain -so adequacy of consideration is irrelevant -mowed neighbour’s lawn last year, this year asking her to do the same thing -go away, come back, grass is really high, can’t sue her, no present consideration -consideration must be present -set of law that will be enforced -existing legal obligation -promises you something extra, cannot sue for additional sum -in order for new promise has to be new consideration -fit this into contracts now -someone bids to build new school or whatever, comes close to deadline, party is freaking out -say can’t complete on time, a bid for more money is a form of blackmail -see problem under existing legal duty -under obligation already -what occurred was case where creditor said she’d accept less, agreed to wave all interest -once had all principle back, sued to make sure got the interest as well -but you promised you’d wave the interest -so no contract that supports that, only contract is he owes the interest -courts hated this decision -acceptations were created 1) 1 day early, equals consideration (creating it) 2) Only applies to money, been new consideration as long as it’s something other then money 3) Only applies to creditors and debtors 4) Make the new promise under seal, doesn’t require consideration -get around rules of consideration -apply under common law -need to think way through to understand how it works -all it says if creditor accepts less money and satisfaction, and debtor pays that amount on time then it extinguishes obligation and creditor loses ability to sue Gratu
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