ACTG 2P40 Lecture Notes - Lecture 4: Estoppel, Mental Disorder
15 Oct 2013
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The parties are each getting something of value; getting something in return. No contract if there"s nothing of value to either parties. Something of benefit flowing to both parties, doesn"t have to be money. (a) definition and nature of consideration (b) consideration vs. gratuitous promise. Gratuitous promise is a one-way promise; a promise made without consideration; doesn"t form the basis of a binding contract. Becomes irreversible if possession is exchanged (morphed into gift). Duty of rescuers if you start with a rescue operation, you can"t make it worse. (c) adequacy of consideration. The amount of consideration going both ways doesn"t have to be equal (just has to be something of benefit). (d) past consideration. A promise given with no consideration (a gratuitous promise). (e) performance of an existing duty. Performance of an existing contractual duty (already have a duty under a contract) cannot form the basis of consideration for a new or revised deal. (f) contracts under seal.
