BU231 Lecture Notes - Contract, Accounts Receivable, Puffery
Document Summary
Chapter 6: formation of a contract, consideration and intention. Before an agreement is binding in law, certain essential elements must be present, primarily there must be consideration, can be replaced though. In a unilateral contract, the price paid for the offeror"s promise is the act done by the offeree. No, it is no longer their property unless there was undue influence. A promise not to sue someone who"s damaged your car in order to force them into paying you can be seen as consideration in a unilateral contract after a car crash. Because that promise is gratuitous, just like the benefit that they received earlier. Moral of the story, if you want to be a good person and receive something for it put it in paper first! After the fact doesn"t matter: benefit previously conferred upon the promisor is called past consideration, past consideration is no consideration.