MGSC30H3 Chapter 8: MGTC31 - Chapter 8
Document Summary
Consideration: something that has value in the eyes of the law, and which a promisor receives in return for a promise. Consideration can take forms such as; payment of money, the performance of a particular service, a promise not to do something by a promisor, the relinquishment of a right, the delivery of property etc. A consideration for a promise must exist in order for a contract to be legally binding. A gratuitous offer of a service, if accepted must be performed with care and skill otherwise, the promisor will be liable for any loss suffered as a result of careless performance or negligence. A person may be liable on a promissory note even though no consideration exists between them. Seal: a formal mode of expressing the intention to be bound by a written promise or agreement, usually takes the form of signing or affixing a wax or gummed paper wafer beside the signature.
