LAW 122 Lecture : Chapter 8 Consideration and Privity
25 Apr 2012
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Document Summary
Gratuitous promise: is a promise for which nothing of legal value is given in exchange. Consideration: exists when a party wither gives (or promises to give) a benefit to someone else or suffers (or promises to suffer) a determent to itself. Sufficient consideration: may be almost anything of value (even promise to give up smoking, drinking, or swearing; exception is love and affection) Although consideration must be sufficient, it does not have to be adequate. Adequate consideration: has essentially the same value as the consideration for which it is exchanged (example i exchange computer for you to stop smoking for a year = not same value but considered same = not adequate consideration) Forbearance to sue: is a promise to not pursue a lawsuit. In many cases, the parties settle their dispute out of courts; they often enter into a contract for that purpose.
