BU231 Chapter Notes - Chapter 6: Contract, Estoppel, Quantum Meruit
Document Summary
Chapter 6 formation of a contract, consideration and intention. Bargain: each party pays a price for promise of the other offer must form a bargain! In a unilateral contract price paid for offeror"s promise = act done by offeree: bilateral contract price paid for each other"s" promise is the promise of the other. Consideration: the price for which the promise of the other is bought. As long as the promisor bargains for the other part to (promise to) do something that she otherwise would not do, the promisor will have received consideration doesn"t have to benefit himself. Gratuitous promise: promise made without bargaining for or accepting anything in return. Consideration is essential to make a contract legally bargaining gratuitous stuff isn"t binding. For gratuitous promises, the law states that if the promisor does not perform, the promise has no legal remedy (compensation for the benefit that was promised)
