LAW 122 Chapter 8: Chapter 8.docx

• School: Ryerson University
• Department: Law and Business
• Course: LAW 122
• Professor: Stan Benda

Document Summary

Main goal of contract law is to enforce bargains & bargains involves more than an offer. & an acceptance, it involves a mutual exchange of value. Gratuitous promise is a promise for which nothing of legal value is given in exchange (ex. on pg 177) Creation of contract therefore generally depends on an exchange of value. Consideration exists when a party either gives or promises to give a benefit to someone else or suffers or promises to suffer a loss to itself (ex. on pg 177) A contract must be supported by sufficient consideration. Although consideration must be sufficient, it does not have to be adequate. Adequate consideration has basically the same value as the consideration for which it is exchanged (ex. on pg 178) For business ppl, the difference btwn sufficient consideration & adequate consideration is particularly important in the context of forbearance to sue: forbearance to sue is a promise to not engage in a lawsuit.