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”
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- Spring '08