Textbook Notes (363,185)
Canada (158,247)
LAW 122 (616)
Chapter 8

Chapter 8 - Consideration and Privity (LAW 122)

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Ryerson University
Law and Business
LAW 122
Andre Serero

Consideration -gratuitous promise  a promise for which nothing of legal value is given in exchange -consideration  exists when a party either gives a benefit to someone else or suffers a detriment to itself - detriment is a state of harm or damage Sufficient & Adequate Consideration -sufficient consideration  may be almost anything of value -ex. Sufficient if a person promises to give up smoking, drinking, or swearing -adequate consideration  essentially the same value as the consideration for which it is exchanged -ex. I promise to give you a computer with $5000 and you promise to give up smoking -law presumes that people are able to look after their own interests, generally allows them to decide what price they will demand under a contract Forbearance to Sue - promise to not pursue a lawsuit -plaintiff promises not to bring the matter into court and the defendant agrees to pay less money than it allegedly owed Past Consideration -consideration must be provided by both sides -there also must be mutuality consideration  each party must provide consideration in return for the other party’s consideration -mutuality is important to the idea of past consideration  consists of something that a party did prior to the contemplation of a contract  good example on PG.180 Pre-Existing Obligation -an obligation that existed, but was not actually performed before the contract was contemplated -3 types of pre-existing obligations Pre-Existing Public Duty -a person who owes a pre-existing public duty cant rely upon that obligation as consideration for a new contract  ex. PG.181 Pre-Existing Contractual Obligation Owed to Third Party -basically made 1 promise for 2 contracts ex. PG.182 Pre-Existing Contractual Obligation Owed to the Same Party -courts usually hold that the same person cant be required to pay twice for the same benefit -READ CASE BRIEF 8.3  PG.183 -ways to avoid; process of novation, agree for exchange & seal Promise to Forgive an Existing Debt  PG. 184 -example about paying not paying the 30000 but he asks for it back. You are obligated to pay it because you didn’t provide any fresh consideration for his earlier promise -several exceptions to avoid not paying; 1.promise to accept less money is enforceable if its placed under seal 2.gives something new in exchange Promise Enforceable Without Consideration -a promise is enforceable only
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