Ch+15-REVIEW-Consideration-S10

Ch+15-REVIEW-Consideration-S10 - Ch 15 Consideration Dr...

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Ch 15- Consideration Dr. Deborah Pomeroy REVIEW BLaw 2361 - S10 The second requirement of a valid K is CONSIDERATION . C/S = what each party will receive in return for performing K obligations. In a BILATERAL K (promise for a promise), C/S for each promise is a return promise. In a UNILATERAL K (promise for an act), one party’s C/S is the promise and the other party’s C/S is the act. Two ELEMENTS of C/S are: 1—Legal Sufficiency: Must be something of legally sufficient value given in EXCHANGE for something else of legally sufficient value; AND 2—Bargained-for Exchange ELEMENT 1: LEGAL SUFFICIENCY --To be LEGALLY SUFFICIENT , the C/S for the K must be EITHER --a legal benefit OR --a legal detriment --LEGAL BENEFIT is the obtaining by a party of something which (s)he had no legal right to obtain prior to the K. --LEGAL DETRIMENT is something which, prior to the K, the party was under no legal obligation to do OR to refrain from doing. ( Refraining from doing something is called forebearance ). 1 |
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FAMOUS CASE: Hamer v. Sidway , ( 1891 ) re Forebearance (LEGAL DETRIMENT) as C/S. ADEQUACY of C/S: Important: The legal value of C/S is distinct from the economic or financial value (if any) of the C/S. Legal sufficiency has nothing to do with adequacy of C/S. --The requirement of legal sufficiency is not at all concerned with whether the bargain was “fair” or either a good or bad “deal” for either party. --The requirement is simply that the C/S have legal sufficiency, i.e., either impose a legal detriment or confer a legal benefit. Ordinarily
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Ch+15-REVIEW-Consideration-S10 - Ch 15 Consideration Dr...

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