Consideration.docx - Consideration Why do I need to know this Understand the requirements of a valid contact Know the difference between a gift and a

Consideration.docx - Consideration Why do I need to know...

This preview shows page 1 - 2 out of 2 pages.

Consideration Why do I need to know this? Understand the requirements of a valid contact Know the difference between a gift and a contract Be careful what and how you promise people Know when you are bound and when you are not The “bargained for exchange” In order for a contract to be legally valid, there must be an offer, acceptance and A CONSIDERATION (both parties need to give something) In a bargained-for exchange, the consideration given by the promisor must induce the promise to incur a legal detriment and/or provide a legal benefit to the promisor, either or both of which are sufficient to induce the promisor to make the promise Did the promise suffer a legal detriment (doing something that it was not obligated to do, or refraining rom doing something that it had a right to do)? Hamer v. Sidway o Pg 363-64 see examples o Trial court denied the promise but appellate court reversed o He gave up something he had the legal right to do (drink and smoke), when you give it up it is a detriment EVEN if its “good for you”
Image of page 1
Image of page 2

You've reached the end of your free preview.

Want to read both pages?

  • Spring '08
  • Baker

  • Left Quote Icon

    Student Picture

  • Left Quote Icon

    Student Picture

  • Left Quote Icon

    Student Picture