Another requirement for contract is that both sides

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Another requirement for contract is that both sides understand what’s going on (mental capacity) Haggling Both parties have some sense of how much product is actually worth But it could be fraudulent if you consciously lie to someone (or withhold information from someone) about knowing the value of something Consideration is simply the exchange of value Nominal consideration – nominal sum of money o Attorney When you are talking to an attorney, the attorney cannot repeat what you (the client) have said You have to have already paid the attorney for this to apply, however So to be sure the attorney will stay quiet, there has to be consideration You have to pay the attorney some small fee so that the attorney- client privilege applies This way, you can speak freely with the attorney without fear that he’ll repeat what you say By giving him this nominal consideration (the exchange of value), you are safe o Land Preexisting duty o We already have agreement to do a particular duty – we are locked into it This agreement is preexisting Can’t change something unless you both agree to it o Precludes someone from using an act as a form of consideration o Someone asks a cop to watch his shop while he was away; offers to pay cop Is this a valid contract? No – the city is already paying the cop to watch over the property He gives his consideration to the city
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If your shop is out of his way (out of the area in which he is assigned to work), then this can be a contract o Once the consideration is used, you can’t use it again Once you promise someone something, that something is committed o Preexisting duty cannot be grounds for contract o But there are ways to get around the preexisting duty Jointly agree to tear up the contract (literally) Once the prior contract is destroyed, the consideration is no longer tied up Add something to your responsibility Can add a duty —that is, a new consideration—to the original contract o Or you can add a consideration and make it a new contract (as opposed to just adding it to the old contract) Example o Phillies player wants more money than stipulated in his contract o He can make a new contract (or add onto the old contract), and create a new consideration He can clean out the dugout (this would be his new consideration), for example, for one million dollars There is an exchange of value from both sides o Can only use your consideration once The cop from before gave his consideration to the city To terminate a contract, both sides have to agree
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