BU231 Study Guide - Midterm Guide: Berlin Outer Ring
Document Summary
Accepted offer is not a enforceable contract unless it has consideration. Accepted offer must form bargain: each party pays a price for the promise of the other. Consideration: the price paid for each promise is the promise of the other. Consideration is key to make contract legally binding. Gratuitous promise: a promise make without bargaining or accepting anything in return (ex. The court does not make sure the parties have made a fair bargain. If there is allegation of wrongdoing, then court may look at adequacy of consideration. Past consideration: a past promise or act which forms the basis of a future promise. A promise is said to be given for moral or past consideration when the promisor"s motivation for making the promise is a past benefit he received that gave rise to a moral, but not legal, obligation to make compensation. Promises made without consideration are gratuitous, and the failure to perform them generally has no remedy in law.
