LAW 122 Lecture Notes - Novation, Himalaya Clause, Estoppel

• School: Ryerson University
• Department: Law and Business
• Course: LAW 122
• Professor: Theresa Miedema

Document Summary

Gratuitous promise is a promise for which nothing of legal value if given exchange. Consideration exists when a party either gives (or promises to give) a benefit to someone else or suffers (or promises to suffer) a detriment to itself. Sufficient consideration may be almost anything of value. Adequate consideration has essentially the same value as the consideration for which it is exchanged. Peppercorn theory law presumes that people are able to look after their own interest; it generally allows them to decide what price they will demand under a contract. Forbearance to sue is a promise to not pursue a lawsuit. Mutuality of consideration requires that each party provides consideration in return for the other party"s consideration. Past consideration consists of something that a party did prior to the contemplation of a contract. Pre-existing obligation is an obligation that existed, but was not actually preformed, before the contract was contemplated. A pre-existing public duty (police and firemen)