BUS 206 Chapter 15 lecture Notes
What are the options? Each and every deal must include consideration. It is what someone will
get in exchange for fulfilling a contractual duty. Anything can be considered as long as it results
from a mutually agreed-upon trade.
Comprehending consideration's governing principles and its exceptions is essential for
understanding it. Lack of Consideration: In a bilateral contract (a promise for a promise), the
consideration for each promise is a return promise. A court will only uphold one party's
commitment if the other party pledged some sort of exchange in response. One party's
consideration in a unilateral contract (a promise for an act) is the promise, while the other party's
consideration is the act. Promissory estoppel is one exception to the norm that has to be taken
into account. It takes place when three requirements are satisfied.
When one party makes a promise, the other party is either aware of it or should be aware that
they may fairly rely on it. The opposite party does depend on the promise in a reasonable
manner. The pledge must be upheld in order to prevent injustice. Although promissory estoppel
is seldom granted, it might offer relief in some circumstances where no other options are
available. A contract under seal is a second exemption to the norm requiring consideration. The
term seal or the initials L.S are frequently used to identify sealed contracts. Additionally,
customers may buy contract forms with a pre-printed seal. A sealed contract without
consideration may still be enforced in 10 states. Sufficient Consideration The judge won't throw
out the transaction because you got a lousy deal, but if the judge thinks fraud or undue influence
took place, the judge could assess whether the consideration was adequate. Rarely does the court
take enough thought into account.
