Chapter 12 - Chapter 12 - Consideration 12.1 Define...

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Chapter 12 - Consideration 12.1 Define consideration and give an example of consideration which would be sufficient to legally bind a contract. Consideration is the value given in return for a promise. On ebay, the buyer promises to pay for the item and the seller promises to ship an item (even though people sometimes get out of that because it is hard to enforce). 12.2 Sally receives a gift from Steve of a ring worth $100,000. Subsequently, Sally promises to pay Steve the value of the ring. Is Sally's promise legally binding? No, it is not legally binding, because it is a promise in exchange for nothing, Sally already received the ring. 12.3 Dad desires to make a binding promise to give $1000 to his son, Sonny. Being advised that a gratuitous promise is not binding, Dad offers to buy from Sonny for $1000 a book worth less than $1. Is there consideration present that would make Dad's promise legally binding? Yes, there is sufficient consideration because the Dad is offering a promise of $1000 for an item.
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Chapter 12 - Chapter 12 - Consideration 12.1 Define...

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