BLAW 2301 Lecture Notes - Lecture 13: Estoppel
26 Jun 2018
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CH 13: CONSIDERATION
So then what are the elements to consideration?
1) bargain and exchange- When something is sought by the promisor and given by
the promisee in exchange for their promises
Ex:(even buying a loaf of bread for $2 at store is B&E)
2) value- both parties must receive some type of legal value
So wht is value?
Act: doing smth u r not legally required to in the first place.
Forbearance: Refraining from doing something that one had a legal right to do
Hammer vs sidway
A promise to act or forbear
What DON’T qualify as consideration?
1) Illusory promises: Not concrete promises at all, not binding enough for consideration
Ex: I’ll give u A’s at end of semester if I feel like it
Exception (These count as consideration): Requirement and output contracts (only used
for the sale of goods in UCC- good faith is wht acts as the consideration)
1. Requirements contract: Contract in which a buyer agrees to purchase all of her goods
from one seller, and the seller agrees to sell the buyer whatever quantity she
reasonably needs
2. Output contract: Contract in which the seller guarantees to sell all of its output to one
buyer, and the buyer agrees to accept the entire quantity
2) Preexisting duty: If someone provides a service that she is already obligated to do, that act
does not count as consideration.
–Ex: having contract with univ to teach and asking for extra $5k to finish classes is not contract.
(These count as consideration):
Exception: Additional Work
- Promisor agrees to do something above and beyond what he is obligated to do
Exception: Modification
- Rescind and draft a new contract. Muts be signed agreement. Does not have to have
consideration to be binding. Asking for higher rise in payment cuz offered another
job. Can make new contract with higher pay and extended period of time of ur duty.
Exception: Unforeseen Circumstances
- When unforeseen circumstances cause a party to make a promise regarding an
unfinished project, that promise is generally valid consideration.
- Ex: someone is rebuilding bathroom wall, see’s u have a lot of mold behind it- so thts
unforeseen circumstances so there is consideration.
find more resources at oneclass.com
find more resources at oneclass.com
Document Summary
1) bargain and exchange- when something is sought by the promisor and given by the promisee in exchange for their promises. Ex:(even buying a loaf of bread for at store is b&e: value- both parties must receive some type of legal value. Act: doing smth u r not legally required to in the first place. Forbearance: refraining from doing something that one had a legal right to do. Illusory promises: not concrete promises at all, not binding enough for consideration. Ex: i"ll give u a"s at end of semester if i feel like it. Ex: having contract with univ to teach and asking for extra k to finish classes is not contract. (these count as consideration): Promisor agrees to do something above and beyond what he is obligated to do. Does not have to have consideration to be binding. Asking for higher rise in payment cuz offered another job.
