BU231 Chapter Notes - Chapter 7: Estoppel, Covenanter
Document Summary
The meaning of consideration: bargain: each party pays a price for the promise of the other, consideration: the price for which the promise of the other is bought. Gratuitous promise: a promise made without bargaining for or accepting anything in return, even though it is accepted, the promise is not a contract enforceable in law. Adequacy of consideration: the fairness of the consideration does not matter to the court, as long as both parties accepted it. If parties decide to settle outside of court, typically one party pays another to waive their right to a law suit. Past consideration and motive: motives cannot change a gratuitous promise into a binding contract, past consideration: a gratuitous benefit previously conferred upon a promisor. If nothing extra is exchanged for a gratuitous promise, then it is beyond the existing legal duty and does not have ample consideration. If something is given in exchange for the gratuitous promise, then it becomes another binding contract.
