P1253814557oxenb - PowerPoint PPT Presentation
1 / 7
Title:
P1253814557oxenb
Description:
... be doing an act, refraining from an act, or merely promising to do or to refrain. ... Because consideration is the price given to obtain the promise, past benefits ... – PowerPoint PPT presentation
Number of Views:23
Avg rating:3.0/5.0
Title: P1253814557oxenb
1
Chapter 15CONSIDERATION
2
General Principles
- Consideration is what each party gives up to the
other in the making of the agreement it is the
price of the contract for each side. - That price may be doing an act, refraining from
an act, or merely promising to do or to refrain. - A promise to do what one is already obligated to
do is usually not valid consideration. - Because consideration is the price given to
obtain the promise, past benefits already
conferred on the promisor usually cannot be
consideration. - Consideration is defined as a detriment to one
party while also being a benefit to the other.
3
Consideration Defined
- A promise is not binding if there is no
consideration for the promise. - In a bilateral contract, the promise of each
party must be supported by consideration. If
either promise is not supported, it is not a
contract. - Although consideration is required to make a
promise binding, the unsupported promise is not
illegal. The parties are free to perform their
agreement, but the courts will not help either of
them because there is no contract.
4
Gifts
A gift does not have consideration, so a promise
to make a gift is not enforceable. A completed
gift, however, cannot be rescinded for lack of
consideration.
5
Adequacy of Consideration
- When the promisor obtains the consideration
specified for the promise, the law is not
ordinarily concerned with the value or adequacy
of that consideration. - Exceptions are sometimes made in the case of
fraud or unconscionability and under consumer
protection statutes. - Illusory Promises no binding obligation.
6
Special Situations
- Forbearance refraining to do an act that a
person has a right to do. - Pre-existing Legal Obligations Promising to do
what has already been agreed to is not
consideration. - Past Consideration.
- Moral Obligations.
7
Exceptions to Consideration
- Charitable Subscriptions.
- Pledges to Churches.
- Uniform Commercial Code.
- Abolishes consideration.
- Promissory Estoppel/Detrimental Reliance.
Recommended
CrystalGraphics Presentations
