Contract Law for Paralegals: Traditional and E-Contracts © 2009 Pearson Education, Upper Saddle River, NJ 07458. All rights reserved Consideration Chapter.

Slides:



Advertisements
Similar presentations
Consideration Definition: X promises not to file a suit against Y if Y pays him $100 by a fixed date. The forbearance of X is the consideration for Y's.
Advertisements

CHAPTER 15: BARGAINED-FOR CONSIDERATION. Learning Objectives: Nature of the Consideration Requirement Bargain Theory of Consideration Mutuality of Obligation.
Chapter 11 CONSIDERATION.
Consideration Chapter 8.
Business Law: Ch 8 Consideration.
Section 8.1.
E- CONTRACTING MIDTERM(2). Definition E- Contract- a contract that is entered into in cyberspace and is evidenced only by electronic impulses (such as.
Chapter 11 Contracts — Consideration. Introduction Consideration is legal value given in return for a promise or performance. Must have something of legal.
1. 2 CONSIDERATION Consideration is a required element of every contract.
Mutual Consideration ● 9-1 What is Consideration? ● 9-2 Legal Value and Bargained-For Exchange ● 9-3 When is Consideration Not Required?
Chapter 9 Consideration Chapter 9: Consideration.
Chapter 15 Consideration.
Chapter 2 The Law of Contract
Agreement and Consideration in Contracts Chapter 7.
B USINESS L AW II Methods: Termination of an Offer.
Chapter 7 Contracts: Classification, Agreement, and Consideration
Copyright © 2008 by West Legal Studies in Business A Division of Thomson Learning Chapter 15 Contracts: Consideration Twomey Jennings Anderson’s Business.
Contract Law for Paralegals: Traditional and E-Contracts © 2009 Pearson Education, Upper Saddle River, NJ All rights reserved Agreement Chapter.
Contract Law for Paralegals: Traditional and E-Contracts © 2009 Pearson Education, Upper Saddle River, NJ All rights reserved Remedies for Breach.
Contract Law for Paralegals: Traditional and E-Contracts © 2009 Pearson Education, Upper Saddle River, NJ All rights reserved Third-Party Rights.
Contract Law for Paralegals: Traditional and E-Contracts © 2009 Pearson Education, Upper Saddle River, NJ All rights reserved Genuineness of Assent.
Chapter 6 Contracts: Nature, Classification, Agreement and Consideration.
Chapter 4: Consideration (Bargained for Exchange)
© 2007 Prentice Hall, Business Law, sixth edition, Henry R. Cheeseman Chapter 11 Consideration and Equity Chapter 11 Consideration and Equity.
© 2010 Pearson Education, Inc., publishing as Prentice-Hall 1 CONSIDERATION AND PROMISSORY ESTOPPEL © 2010 Pearson Education, Inc., publishing as Prentice-Hall.
Contract Law for Paralegals: Traditional and E-Contracts © 2009 Pearson Education, Upper Saddle River, NJ All rights reserved Capacity and Legality.
P A R T P A R T Contracts Introduction to Contracts The Agreement: Offer The Agreement: Acceptance Consideration Reality of Consent 3 McGraw-Hill/Irwin.
Business Law and the Regulation of Business Chapter 12: Consideration
BUSINESS Law Chapter 9 Mutual Consideration.
CHAPTER 8: CONSIDERATION By: Mike Francini, Tasia Gorski, Caitlin McNamara, & Sam Zangara Chapter 8: Consideration.
CHAPTER 8 Consideration
Consideration is legal value bargained for and given in exchange for an act or a promise Elements of Consideration Purely gratuitous promises are.
© 2008 West Legal Studies in Business A Division of Thomson Learning 1 BUSINESS LAW TODAY Essentials 8 th Ed. Roger LeRoy Miller - Institute for University.
Essentials Of Business Law Chapter 8 Consideration McGraw-Hill/Irwin Copyright © 2007 The McGraw-Hill Companies, Inc. All rights reserved.
Chapter 7 Contract Formation Copyright © 2015 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent.
Agreement Chapter 10. Agreement Usually evinced by the existence of an offer and acceptance Requirements of the offer –Serious objective intent –Terms.
 Is an essential element of a valid contract. An agreement without consideration is a bare promise and is not binding on the parties.
Fundamentals of Business Law Summarized Cases, 8 th Ed., and Excerpted Cases, 2 nd Ed. ROGER LeROY MILLER Institute for University Studies Arlington, Texas.
Chapter 9 Mutual Consideration. Consideration Main purpose of consideration is to distinguish between social promises and more serious transactions where.
Consideration 2.01 Understanding elements and characteristics of a contract.
Copyright © 2009 by Pearson Prentice-Hall. All rights reserved. PowerPoint Slides to Accompany CONTEMPORARY BUSINESS AND ONLINE COMMERCE LAW 6 th Edition.
Consideration Chapter 8. Consideration – what a person demands and generally must receive in order to make a contract legally binding.
Chapter 8 Consideration. Gratuitous: Free Agreements Consideration : The exchange of benefits and detriments by the parties to an agreement. Benefit:
12-1 Copyright © 2013 by The McGraw-Hill Companies, Inc. All rights reserved.McGraw-Hill/Irwin.
© 2007 West Legal Studies in Business, A Division of Thomson Learning Chapter 8 Contracts: Agreement and Consideration.
© 2005 West Legal Studies in Business A Division of Thomson Learning CHAPTER 7 Contracts: Nature, Classification, Agreement and Consideration.
CHAPTER 3: FORMANTION OF A CONTRACT Emond Montgomery Publications 1.
A Bargain and an Exchange Consideration means that there must be bargaining that leads to an exchange between the parties. Consideration can be anything.
© 2013 The McGraw-Hill Companies, Inc. All rights reserved. Chapter 10 Consideration 1 Copyright © 2016 McGraw-Hill Education. All rights reserved.
Chapter 10 Agreement and Consideration.. Introduction Contracts are voluntary agreements between the parties; that is, one party makes an offer that is.
Copyright © 2010 South-Western Legal Studies in Business, a part of South-Western Cengage Learning. and the Legal Environment, 10 th edition by Richard.
1 Ch 11 & Ch12—The Heart of A Contract Ch 11: A. Requirements of an Offer 1. Intent 2. Definiteness 3. Communication B. Termination of the Offer C. Acceptance.
Consideration. The Opening Scene, pg. 163  Jake  Alena  Arkadi  Viktor  Jessica.
Consideration Agreement Law
Consideration Chapter Types of Consideration Identify the 3 requirements of consideration Discuss the adequacy of consideration.
Contract Law for Paralegals: Traditional and E-Contracts © 2009 Pearson Education, Upper Saddle River, NJ All rights reserved Nature of Traditional.
Mutual Consideration Mrs. A Business Law 9-1What Is Consideration? 9-2Legal Value and Bargained-For Exchange 9-3When Is Consideration Not Required? 1 CHAPTER.
David P. Twomey - Boston College
Chapter 10 Agreement and Consideration
Chapter 12: Consideration
Chapter 11 Contracts: Consideration
Chapter 11 Consideration
Chapter 13: Contracts – Consideration
Chapter 12 Contracts: Consideration
Chapter 12 Contracts: Consideration
Chapter 11 Consideration and Promissory Estoppel
Chapter 11 Consideration and Promissory Estoppel
Chapter 15 CONSIDERATION
Chapter 12 Consideration
Chapter 11 Consideration
Presentation transcript:

Contract Law for Paralegals: Traditional and E-Contracts © 2009 Pearson Education, Upper Saddle River, NJ All rights reserved Consideration Chapter 3

Reed/Cheeseman: Contract Law for Paralegals© 2009 Pearson Education, Upper Saddle River, NJ All rights reserved Consideration Consideration – something of legal value given in exchange for a promise. Consideration is a necessary element for the existence of a contract. Common types of consideration are: A tangible payment (money or property); or Performance of an act (e.g., providing legal services).

Reed/Cheeseman: Contract Law for Paralegals© 2009 Pearson Education, Upper Saddle River, NJ All rights reserved Consideration (continued) Consideration consists of two elements: 1. Something of legal value must be given; and 2. There must be a bargained-for exchange.

Reed/Cheeseman: Contract Law for Paralegals© 2009 Pearson Education, Upper Saddle River, NJ All rights reserved Legal Value Something of legal value must be given. Under the modern law of contracts, a contract is considered supported by legal value if: 1. The promisee suffers a legal detriment; or 2. The promisor receives a legal benefit.

Reed/Cheeseman: Contract Law for Paralegals© 2009 Pearson Education, Upper Saddle River, NJ All rights reserved Bargained-for Exchange To be enforceable, a contract must arise from a bargained-for exchange. Exchange that parties engage in that leads to an enforceable contract. Gift or gratuitous promise – an unenforceable promise because it lacks consideration.

Reed/Cheeseman: Contract Law for Paralegals© 2009 Pearson Education, Upper Saddle River, NJ All rights reserved The Use of Output and Requirements Contracts in Business There are two special types of business contracts that specifically allow a greater degree of uncertainty concerning consideration: Output Contracts Requirements Contracts

Reed/Cheeseman: Contract Law for Paralegals© 2009 Pearson Education, Upper Saddle River, NJ All rights reserved 7 Contemporary Business Environment Nominal Consideration Best Efforts Contracts

Reed/Cheeseman: Contract Law for Paralegals© 2009 Pearson Education, Upper Saddle River, NJ All rights reserved Contracts Lacking Consideration  Illegal Consideration  Illusory Promise  Moral Obligation  Preexisting Duty  Past Consideration

Reed/Cheeseman: Contract Law for Paralegals© 2009 Pearson Education, Upper Saddle River, NJ All rights reserved Illegal Consideration Illegal consideration – a promise to refrain from doing an illegal act. Such a promise will not support a contract.

Reed/Cheeseman: Contract Law for Paralegals© 2009 Pearson Education, Upper Saddle River, NJ All rights reserved Illusory Promise Illusory promise – a contract into which both parties enter, but one or both of the parties can choose not to perform their contractual obligations. Thus, the contract lacks consideration. Such promises are unenforceable.

Reed/Cheeseman: Contract Law for Paralegals© 2009 Pearson Education, Upper Saddle River, NJ All rights reserved Moral Obligation Promises made out of a sense of moral obligation or honor lack consideration. Moral consideration is not treated as legal consideration. Such promises are unenforceable in most states.

Reed/Cheeseman: Contract Law for Paralegals© 2009 Pearson Education, Upper Saddle River, NJ All rights reserved Preexisting Duty Preexisting duty – a promise lacks consideration if a person promises to perform an act or do something he or she is already under an obligation to do. The promise is unenforceable because no new consideration has been given.

Reed/Cheeseman: Contract Law for Paralegals© 2009 Pearson Education, Upper Saddle River, NJ All rights reserved © 2007 Prentice Hall, Business Law, sixth edition, Henry R. Cheeseman Preexisting Duty (continued) The preexisting duty rule arises when one of the parties to an existing contract seeks to change the terms of the contract during the course of its performance. Such midstream changes are unenforceable. The parties have a preexisting duty to perform according to the original terms of the contract.

Reed/Cheeseman: Contract Law for Paralegals© 2009 Pearson Education, Upper Saddle River, NJ All rights reserved Preexisting Duty (continued) Sometimes a party to a contract runs into substantial unforeseen difficulties while performing his or her contractual duties. The contract can be modified and enforced without new consideration being given.

Reed/Cheeseman: Contract Law for Paralegals© 2009 Pearson Education, Upper Saddle River, NJ All rights reserved Past Consideration Problems of past consideration often arise when a party to a contract promises to pay additional compensation for work done in the past. Past consideration (e.g., prior acts) will not support a new contract. New consideration must be given.

Reed/Cheeseman: Contract Law for Paralegals© 2009 Pearson Education, Upper Saddle River, NJ All rights reserved Concept Summary: Promises Lacking Consideration Type of ConsiderationDescription of Promise Illegal considerationPromise to refrain from doing an illegal act. Illusory promisePromise where one or both parties can choose not to perform their obligation. Moral obligationPromise made out of a sense of moral obligation or honor or love or affection. Some states enforce these types of contracts. Preexisting dutyPromise based on the preexisting duty of the promisee to perform. The promise is enforceable if (1) the parties rescind the contract and enter into a new contract, or (2) there are unforeseen difficulties. Past considerationPromise based on the past performance of the promise.

Reed/Cheeseman: Contract Law for Paralegals© 2009 Pearson Education, Upper Saddle River, NJ All rights reserved Settlement of Claims The law promotes the voluntary settlement of disputed claims. Settlement: Saves judicial resources, and Serves the interests of the parties entering into the settlement

Reed/Cheeseman: Contract Law for Paralegals© 2009 Pearson Education, Upper Saddle River, NJ All rights reserved Settlement of Claims (continued) Accord – an agreement whereby the parties agree to accept something different in satisfaction of the original contract. Satisfaction – the performance of the accord. If the accord is not satisfied, the other party can sue to enforce either the accord or the original contract.

Reed/Cheeseman: Contract Law for Paralegals© 2009 Pearson Education, Upper Saddle River, NJ All rights reserved Promissory Estoppel Promissory estoppel (detrimental reliance) A doctrine that prevents the withdrawal of a promise by a promisor if it will adversely affect a promisee who has adjusted his or her position in justifiable reliance on the promise.

Reed/Cheeseman: Contract Law for Paralegals© 2009 Pearson Education, Upper Saddle River, NJ All rights reserved Promissory Estoppel (continued) For the doctrine of promissory estoppel to be applied, the following elements must be shown: 1. The promisor made a promise. 2. The promisor should have reasonably expected to induce the promisee to rely on the promise.

Reed/Cheeseman: Contract Law for Paralegals© 2009 Pearson Education, Upper Saddle River, NJ All rights reserved Promissory Estoppel (continued) 3. The promisee actually relied on the promise and engaged in an action or forbearance of a right of a definite and substantial nature. 4. Injustice would be caused if the promise were not enforced.