Chapter 15 - Consideration

Chapter 15 - Consideration - Chapter 15 Consideration I....

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Chapter 15 – Consideration I. General Principles a. Consideration Defined and Explained i. Consideration: 1. What each party to a contract gives up to the other in making their agreement ii. Bargained-For Exchange: 1. Consideration is the bargained-for exchange between the parties to a contract a. In order for consideration to exist, something of value must be given or promised in return for the performance or promise of performance of the other iii. Benefit-Detriment Approach: 1. Defines the consideration as a benefit received by the promisor or a detriment incurred by the promise b. Gifts i. Promises to make a gift are unenforceable promises under the law of contracts due to the lack of consideration ii. Charitable subscriptions by which individuals make pledges to finance the construction of a college building, church, etc ARE binding c. Adequacy of Consideration i. Doesn’t matter how little the consideration is d. Forbearance as Consideration i. In most cases, consideration consists of the performance of an act such as
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This note was uploaded on 04/24/2011 for the course MGMT 354 taught by Professor Staff during the Spring '08 term at Purdue.

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Chapter 15 - Consideration - Chapter 15 Consideration I....

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