causing a change in their position the promisor is bound to the promise Ex

Causing a change in their position the promisor is

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causing a change in their position, the promisor is bound to the promise Ex. retirement payments Public policy issue- acting in the best interest of society Charitable Donations (no consideration needed) Many courts enforce promises (charitable subscriptions) based on Invention of consideration- a donor’s promise is supported by the detriment incurred by other donors who made similar promises Many courts will simply enforce the promise on the grounds of public policy Gifts (no consideration needed) A promise to give a gift is not enforceable because there is no consideration Can be enforceable if promisee makes decisions because of gift after receiving it Engagement ring- he got it back Proposal is essentially a contract- promising to get married CHAPTER 13/14- ILLEGALITY & VOIDABLE CONTRACTS EXCULPATORY CLAUSES AND UNCONSCIONABLE CONTRACTS Exculpatory Clauses Clauses that say a party cannot be held liable for negligence Courts will give effect to exculpatory clauses where they involve only recreational activities (skydiving, rafting), or other activities that are completely optional on part of participant. These clauses do not bar a negligence claims in situations where the party is providing service of goods that are essential to everyday life (lodging, medical services, utility services) Unconscionable Contracts The terms of a contract are so unfair to one of the parties in light of common mores and business practices that they shock the courts- unenforceable Courts are normally not concerned with the fairness or unfairness of a particular contract- normally enforced regardless of fairness to an individual party VOIDABLE CONTRACTS Voidable Contracts Lack of capacity - lack of the legal ability to perform a particular act, such as making a valid contract Voidable on part of minor of Minors Mentally impaired or intoxicated persons
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Lack of consent - consent not genuine Even if the two parties with full capacity enter into an agreement, it can be voided if it is found that the consent of one of the parties was not genuine Undue influence Fraud Duress Mistake Voidable on part of injured party LACK OF CAPACITY Minors A contract made between a minor and an adult can be disaffirmed by the minor (but not by the adult) at any time before the minor turns 18, or within a reasonable time after reaching adulthood Contract is not void if someone with no legal capacity raises no objection Minors can disaffirm a contract even if the contract has been fully executed Ex. Minor can buy a car and return it later and get his full money back in most states Minors can still disaffirm a contract even if they have lied and misrepresented their age, as long as the contract has not yet been performed Exceptions Necessities- minors are fully responsible for the contracts dealing with necessities such as food, lodging, clothing, and medicine Common Carriers- airline, buses, trains, ferries, etc. minors cannot get
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