tailieunhanh - Lecture Business law: The ethical, global, and e-commerce environment (15/e): Chapter 12 - Mallor, Barnes, Bowers, Langvardt

Chapter 12 provides knowledge of consideration. Upon completion of this lesson, the successful participant will be able to: Define concept of consideration, list elements, and explain significance; explain why illusory promises, past consideration, and promises to perform preexisting obligations are not consideration; determine what is a valid contract modification. | Copyright © 2013 by The McGraw-Hill Companies, Inc. All rights reserved. McGraw-Hill/Irwin 3 Introduction to Contracts The Agreement: Offer The Agreement: Acceptance Consideration Reality of Consent Contracts P A R T 3 Capacity to Contract Illegality Writing Rights of Third Parties Performance and Remedies Contracts P A R T Consideration P A E T R H C 12 Make yourself necessary to someone. Ralph Waldo Emerson The Conduct of Life (1860) Learning Objectives Define concept of consideration, list elements, and explain significance Explain why illusory promises, past consideration, and promises to perform preexisting obligations are not consideration Determine what is a valid contract modification Consideration is legal value bargained for and given in exchange for an act or a promise Elements of Consideration Purely gratuitous promises are not enforceable because not supported by consideration Thorne v. Deas Example: early case of Thorne v. Deas, in which part owner of sailing . | Copyright © 2013 by The McGraw-Hill Companies, Inc. All rights reserved. McGraw-Hill/Irwin 3 Introduction to Contracts The Agreement: Offer The Agreement: Acceptance Consideration Reality of Consent Contracts P A R T 3 Capacity to Contract Illegality Writing Rights of Third Parties Performance and Remedies Contracts P A R T Consideration P A E T R H C 12 Make yourself necessary to someone. Ralph Waldo Emerson The Conduct of Life (1860) Learning Objectives Define concept of consideration, list elements, and explain significance Explain why illusory promises, past consideration, and promises to perform preexisting obligations are not consideration Determine what is a valid contract modification Consideration is legal value bargained for and given in exchange for an act or a promise Elements of Consideration Purely gratuitous promises are not enforceable because not supported by consideration Thorne v. Deas Example: early case of Thorne v. Deas, in which part owner of sailing ship promised co-owners he would insure the ship for upcoming voyage. He failed to do so, and when the ship was lost at sea, court found he was not liable to co-owners for breaching his promise because his promise was purely gratuitous; he had neither asked for nor received anything in exchange for making it. Consideration in the form of an act or promise may have legal value if the person acting of promising Refrains from doing something the person has the legal right to do Example: Hamer v. Sidway Does something the person had no prior legal duty to do Generally, courts will not examine adequacy of consideration Legal Value of Consideration In famous 19th-century case, Hamer v. Sidway, an uncle’s promise to pay his nephew $5,000 if he refrained from using tobacco, drinking, swearing, and playing cards or billiards for money until his 21st birthday was held to be supported by consideration. Indeed, the nephew had refrained from doing any of these acts, even though he may have .