MGMT 3100 Chapter Notes - Chapter 7: Quantum Meruit, Dalhousie University, Tums
17 Oct 2015
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Bargain: each party pays a price for the promise of the other. Consideration: price for which the promise of the other is bought: price that makes the promisor"s promise binding. A promise made without bargaining for or accepting anything in return. Ex: if a charity commences a project to construct a building in response to donor"s promise, the project can be undertaken as the price of the pledge. As long as a gratuitous promise remains unperformed, the promise has no right to a remedy. Court does not ensure if the parties have made a fair bargain. Court may look at adequacy of consideration to point-out fraud, duress or undue influence. Motive cannot change a gratuitous promise into a binding contract or reduce a binding promise into voluntary obligation. Past consideration: gratuitous benefit previously conferred upon a promisor. Promisor has a moral duty to perform. Moral cause: moral duty of promisor to perform their promise.
