CONTRACTSCHAPTER 4

CONTRACTSCHAPTER 4 - CONSIDERATION Chapter 4: Business Law...

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CONSIDERATION Chapter 4: Business Law
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Consideration Defined The bargain that supports the contractual relationship. Something of “ legal value ”, ie; benefit or detriment incurred. Mutuality of Consideration each side must give and receive something of legal value.
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Benefit conferred - The exchange of the exact object or service described in the contract. Detriment Incurred - For a detriment to qualify as consideration, the person incurring the detriment must: 1. Give up a legal right 2. At the request of the other party 3. In exchange for something of legal value. Eg. Settlement of a civil lawsuit; Settlement money is offered to plaintiff to forego legal right to trial of the case.
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What Is Not Consideration Past consideration is no consideration ; must be meant to be exchanged as part of the present contract Moral consideration is no consideration; the parties must demonstrate that they bargained with each other A gift is never legal consideration; Illusory promises are never consideration; Illusory if one party has subjective control over terms
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CONTRACTSCHAPTER 4 - CONSIDERATION Chapter 4: Business Law...

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