BU233 Lecture Notes - Lecture 18: Paper Clip, Estoppel, Income Tax
Document Summary
Bu231 chapter 7 formation of a contract. Bargain each party pays a price for the promise of the other. Consideration price for which the promise of the other is bought. Existing legal duty now new consideration so no new contract. Ex. making sailors an offer for an extra to make the return journey across the sea is not enforceable in the courts if the existing contract of voyage included a return trip. Consideration just has to be something new that is agreed upon although it is seemingly worthless. Gratuitous promise a promise made without bargaining for or accepting anything in return; even when accepted it is not a contract enforced by law. If a promise is performed, a gift is made. Past consideration a gratuitous benefit previously conferred upon a promisor. Moral cause moral duty of promisor to perform his promise.
