CHAPTER 12

CHAPTER 12 - CHAPTER SUMMARY Consideration Definition the...

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CHAPTER SUMMARY Consideration Definition the inducement to enter into a contract Elements legal sufficiency and bargained-for exchange Legal Sufficiency Definition consists of either a benefit to the promisor or a detriment to the promisee Legal Benefit obtaining something to which one had no prior legal right Legal Detriment doing an act one is not legally obligated to do or not doing an act that one has a legal right to do Adequacy not required where the parties have freely agreed to the exchange Illusory Promise promise that imposes no obligation on the promisor; the following promises are not illusory: Output Contract agreement to sell all of one’s production to a single buyer Requirements Contract agreement to buy all of one’s needs from a single producer Exclusive Dealing Contract grant to a franchisee or licensee by a manufacturer of the sole right to sell goods in a defined market Conditional Promise one where the obligations are contingent upon the occurrence of a stated event Mann CH 12- 1
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This note was uploaded on 10/14/2010 for the course BUS 5503 taught by Professor Sorrell during the Fall '10 term at Troy.

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CHAPTER 12 - CHAPTER SUMMARY Consideration Definition the...

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