Study Guides (248,018)
Canada (121,232)
LAW 122 (330)
Jane Monro (12)

Chapter 8 law.docx

6 Pages
Unlock Document

Law and Business
LAW 122
Jane Monro

Chapter 8 Consideration Gratuitous Promise: is a promise for which nothing of legal value is given in exchange Consideration: Exist when a party either gives (Or promises to give) benefit to someone else or suffer ( or promises to suffer) a detriment to itself.  Bargain involves offer, acceptance and mutal exchange of value. Sufficient and Adequate Consideration Sufficient consideration: May be almost anything of value. Example: sufficient if a person promises to give up smoking drinking or swearing. EXCEPTION TO THE RULE: Love and affection Example: if an elderly gentleman promise to pay 10,000 to wayward niece in exchange for her promise to “always be kind and caring” the parties will NOT have a contract. Adequate Consideration: has essentially the same value as the consideration for which it is exchanged Example: if you promise to give me a computer worth $5,000 and I promise to give up smoking drinking and swearing, this is a bad bargain. NOT adequate consideration. Enforceable Past Consideration Mutuality of Consideration: required that each party provide consideration in return for the other parties Past Consideration: consists of something a party did prior to the contemplation of a contract.  Example: If a company worked on a lawn before you lived there and you loved it and you promised to pay them $250, you would not have to pay because it was not a contract because they did this before you promised to pay  EXPECTION TO THE RULE: IF YOU see the company and ask them to work on your lawn and they accept and after they are finished you say you will promise to pay 250 you are have to because a reasonable person would expect you to pay. A reasonable price of course Promises enforceable without consideration Seals Seal: is a mark that is put on a written contract to indicate a party’s intention to be bound by the terms of that document. Even though the other party may not have given considerations. Example: A bank may be willing to lend you money but only you garuntee my loan by promising to pay back if I fail to do so. The loan agreement is between me and the bank and you take no benefit. The bank therefore more likey require you to put your promise under seal, the guarantee will then be enforceable even if you receive no consideration. Promissory Estoppel Estoppel: is a rule that precludes from disputing or retracting a statement that they made earlier. Example: suspose you trick me into building a house on your property by saying that the land is mine. When I complete the project, the law will not allow you to unfairly assert your ownership in the property. You will be Estopped from denying the truth or your earlier statement. Promissory estoppel: Is a doctrine that prevents a party from retracting a promise that the other party has relied upon. Case Brief 8.4 example and The doctrine of promissory estoppel will apply only if four requirements are met. Page 186 Privity of Contract  Consideration is necessary for the creation of a contract.  Privity of a contract identifies the people who can be involved in the enforcement of a contract. Stranger: is someone who did not participate in the creation of the contract Privity of contract: Doctrine refers to the relations that exist between the individual who create a contract  You and I cannot impose an obligation on someone who is not generally cannot take advantage of it  Someone who is not part of the agreement generally cannot take advantage of them.  Inly those people are parites to the agreement and in most situation only parties can sue or be sued on the contract Exception to Privity of contract:  Assignment *trust * statue* employment Assignment Assignment: is a process in which a contractual party transfers its rights to a third party Assignor: the contractual party who assigns its contractual right Assignee: Is the stranger to whom the contractual rights are assigned Debtor: is the original contracting party against whom the assigned right can be enforced Look at figure 8.1 Equitable Assignment Equitable assignment: is an assignment that was traditionally enforced by the courts of equity.  Possible to make an equitable assignment of a contractional right, BUT THERE ARE EXECPTIONS 1. THE parties to a contact can agree their right are non assignable 2. The courts sometimes refuse an assignment on policy grounds Example: contracts for matrimonial support cannot be assigned  Assignments can be communicated orally Taking subject to the Equities Subject To the equities: means that the debtor can generally use the same defences and counterclaims against the assignee that it could of used against the assignor.  The debtor can Always rely on the category of defences and counterclaims against the assignee,  But the debtor rely on the second category of defences and counterclaims only if its transaction with the assignor occurred Before it received noticed from the assignee Statutory assignments Statutory assignments: is an assignment that conforms with the requirement of a statute 1. Statue assignments MUST be written, WHILE equitable assignment can be oral 2. Statue assignment written is REQUIRED, while equitable assignment is advisable 3. Statutory assignment must be absolute at the time that it is created. Not absolute if conditional Example: the assignor may intend to have ongoing transaction with the debtor, with the result that the amount of debt will vary from time to time. If so an assignment of the right to receive payment from the debtor would be conditional. The assignment would there for have t
More Less

Related notes for LAW 122

Log In


Join OneClass

Access over 10 million pages of study
documents for 1.3 million courses.

Sign up

Join to view


By registering, I agree to the Terms and Privacy Policies
Already have an account?
Just a few more details

So we can recommend you notes for your school.

Reset Password

Please enter below the email address you registered with and we will send you a link to reset your password.

Add your courses

Get notes from the top students in your class.