LAW 122 Chapter 8: LAW122 Chapter 8 Notes.docx
13 Mar 2012
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A gratuitous promise is a promise for which nothing of legal value is given in exchange. (ex: if i say i will you my computer and you agree, you received nothing of legal value in exchange for it. If i give it to you, you have the right to keep it, but i cannot be forced to hand it over) 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 and adequate consideration: sufficient consideration may be almost anything of value. (ex: it is sufficient if a person promises to give up smoking, or drinking, or swearing) This is (for business people) the difference between sufficient and adequate consideration. Forbearance to sue is a promise to not pursue a lawsuit. Lawsuits are expensive and unpredictable, so most of them are settled out of court. They often enter into a contract for that purpose.
