Chapter_12_Notes_(Consideration) - CONSIDERATION (CHAPTER...

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CONSIDERATION (CHAPTER 12) I) Consideration – something that is legally sufficient, which was bargained for and given in exchange for a promise A) Legal Sufficiency 1) Promisee does or promises to do something they had no prior duty to do OR 2) Promisee refrains from or promises not to do something they have the right to do B) Adequacy 1) Courts don’t care about the adequacy of consideration as long as something is asked for C) Illusory promises are not consideration (Look like a promise, but the promisor has no duty 1) Unlimited right to cancel a contract renders promises illusory (a) Any limitation or right to cancel the contract 2) A promise or a duty which is somewhat uncertain is not necessarily illusory (a) Output Contracts are enforceable (i) One company agrees to sells all of their production of a specific product to another party (b) Requirement Contracts are also enforceable (i) One party agrees to buy all of a product they need from the other party over a period of time (c) Duty of Good Faith
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This note was uploaded on 01/19/2012 for the course BSL 212 taught by Professor Guzzi during the Spring '07 term at University of Miami.

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Chapter_12_Notes_(Consideration) - CONSIDERATION (CHAPTER...

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