COMM231 Chapter Notes - Chapter 6: Estoppel, Tender Offer, Quantum Meruit
3 Nov 2013
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Chapter 6: formation of a contract: consideration and intention. The acceptance of an offer leads to an agreement. Before an agreement is binding in law, it must have two primary elements: Consideration (price for which the promise of the other is bough) Gratuitous promise: promise made without bargaining for or accepting anything in return. (charity donation) Past considerations, the promise is not binding, the promise is gratuitous. A promise to pay additional money for a pre-existing obligation is not enforceable. When creditors agree to accept part performance in settlement of debt and the debtor actually pays the reduced amount, the entire debt is extinguished. (5 provinces in ontario made that binding) Agreement to accept less than the amount owning is a gratuitous promise (not binding) Court"s exercise of its equitable jurisdiction to estop a promisor from claiming that she was not bound by her gratuitous promise where reliance on that promise caused injury to the promise.
