ADMS 2610 Lecture : ADMS2610-Session2-Ch8.docx

• School: York University
• Department: Administrative Studies
• Course: ADMS 2610
• Professor: Robert Levine

Document Summary

The something that the promsior receives in return for the promisor"s promise. Consideration (something that has value in the eyes of the law, and which a promisor receives in return for a promise) Takes many forms (payment of money, performance of a particular service, delivery of property) Consideration for a promise must exist for the contract to be legally binding. Gratuitous promise: a promise not accompanied by consideration, the promisor must get something in return for the promise or the promise is merely gratuitous, not enforceable under law, exceptions: Gratuitous services must be performed with care and skill (negligence still applies sue in tort not contract) Negotiable instruments (promissory notes) where one is still liable on a check or note, and to subsequent endorsers even though no consideration exits. Charitable donations as most donations are gratuitous promises. Firm asking for tender can reject or accept such tenders.