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Consideration essay contract law
Contract law rules
Contract law rules
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Contract Law 1 a.) Consideration within contract law means that a seller promises to provide goods in exchange the buyer will provide money. This is sometimes referred to as “the price paid for a person’s promise”. A definition for consideration was set out in the case of Currie v. Misa (1875) LR 10 Ex 153 it was defined in the following way: “A valuable consideration, in the sense of the law, may consist either of some right, interest, profit or benefit accruing to the one party, or some forbearance, detriment loss or responsibility, given, suffered or undertaken by the other”. (Legal sectary journal, 12/01/2016) B.) With regards to Denise paying the £500 for completing the work on the second deadline, it could be argued that a contract was formed between Denise and Erick when Denise asked Erick to complete the work by the 15th in order to receive the £500, Erick did complete the work on time there for is due the payment, this comes under consideration as something was offered in return for payment. In order for the promise to be enforceable there has to be a clear and sufficient proof of consideration from promisee. Erick accepts the offer of£500 there for a price is agreed upon and past consideration may not …show more content…
This is set out in the case of Dakin v Lee 1916 1 KB 566, in this case the defendants promised to build according to specific details and failed to carry out all the requirements, the court of appeal held that the builders should be able to recover the contract price, even in regards to items found to be
Defining Issue: In order to make an agreement binding one element that must be used is consideration. Without consideration an agreement may not be enforceable, even if there has been an offer and acceptance. What a promiser demands and receives is the price for the promise, which is consideration. A person who makes the promise is called the promisor, while the person to whom the promise is made to is called the promisee. However, the promisor is not entitled to consideration.
a) Given that Eva and Maria entered a written contract supported by a legal document for a price agreed on $75,000 for rendering decorating services, there is consideration. Both parties agree upon a price and this contract verifies validity.
The four elements of a contract are the agreement, the consideration, contractual capacity, and a legal object. The oral agreement between Sam and the chain store satisfies the agreement element of a contract definition because when the chain store offered to sell Sam 's invention at their stores, Sam accepted by agreeing to ship 1000 units in exchange. The second element of a contract, the “consideration of each party,” is satisfied because Sam and the chain store have something to give the other (1000 units of the invention in exchange for the exclusive sales of the product at their stores). The third element is “contractual capacity,” which may or may not be fulfilled since we do not know Sam 's age or whether
However, the common law of contracts did not adequately address the specialized transactions that are routine in the sales of goods. Thus, while many of the principles of the common law of contracts are reflected in the UCC, there are important differences. One such difference lies in the acceptance of an offer. Under the common law of contracts, an acceptance must objectively manifest intent to contract.
Legal Studies Essay Joey Agerholm Exclusion clauses determine the liability of something that might go wrong within a contract. They are used by sellers as an attempt to avoid or limit their liability. The seller has the advantage over the buyer who must agree to the clauses to purchase the product/service. Because of the buyers disadvantage the court takes such cases, involving exclusion clauses, very seriously, and the content of the clauses are carefully interpreted. With the current Trade Practises Act and the Fair Trading Act the standard form of business contract is adequate and effective in protecting the buyer. The Trade Practise Act is the most effective legislation for the protection of the consumer. It implies to the following situations:- - “A promise by the seller that the buyer will become the owner” If a car dealer breaks a promise or part of a contract, for example that he has the right to sell a car, and the car is stolen then although the buyer will have to give the car back he/she will get her money back. - “ A promise by the seller that goods will fit the description supplied by the seller” In this case the buyer is protected if the seller makes a promise, which is a condition of the contract, describing the product, and when the buyer receives the product, it does not match the description. - “ A promise where the seller is made aware of the purpose for which the goods are required, that the goods will be reasonably fit for that purpose” This condition is implied when the buyer makes the purpose of the goods needed known to the seller, and the buyer then relies on the seller’s judgement in providing the correct product. For example it would not be reasonable if you made the seller aware that you wished to purchase something suitable for mowing the average suburban backyard and you were sold a tractor. - “A Promise that goods are of merchantable quality” According to this act a good is considered to be merchantable if they are suitable for the prospect for which other similar goods are sold, involving the description applied to them, the price and any other relevant information. This act does however does not protect the consumer if he/she has examined the product and missed any defects that should have been seen or if the seller made him/her aware of the defect prior to the purchase of the product.
The law of contract in many legal systems requires that parties should act in good faith. English law refuses to impose such a general doctrine of good faith in the field of contract law. However, despite not recognizing the principle, English contract law is still influenced by notions of good faith. As Lord Bingham affirmed, the law has developed numerous piecemeal solutions in response to problems of unfairness. This essay will seek to examine the current and future state of good faith in English contract law.
1) An offer allows the person or business to whom the offer is made to reasonably expect that the offering party is willing to be bound by the offer on the terms proposed. The terms of an offer must be definite and certain . Based on the facts presented in this case, Mr. Pending offered Mr. Thompson a 50 percent raise and a five-year contract. 2) Acceptance is a clear expression of the accepting party’s agreement to the terms of the offer . In applying the case facts, Mr. Thompson accepted Mr. Pending’s offer when he turned down the offer from Ms. Eugest to stay with White Arch Casino (WAC). 3) Consideration is a legal term given to the bargained-for exchange between the parties to the contract – something of value passing from one party to the other. Each party contract will gain some benefit from the agreement and incur some obligation in exchange for that benefit. Finally, Mr. Pending’s bargain-for exchange was if Mr. Thompson stayed with WAC he would receive his offer next
(Insert Citation p 305). Consideration refers to the attained good or service agreed upon by each party under a contract. Contractual Capacity is the legal ability to enter into a binding agreement. Some factors that affect contractual capacity are: age, mental health and agreements under alcohol intoxication. Last but not least is the legal object, which means that for a contract to be enforceable it must be of legal intent and comply with public policy. If all of these factors are present in a contract, we can conclude that a binding contractual agreement exists and it is enforceable by law.
The most authoritative definition of consideration stems from Currie v Misa in which the judgement of Lord Justice Lush defines consideration as “some right, interest, profit or benefit accruing to the one party, or some forbearance, detriment, loss or responsibility given, suffered or undertaken by the other.” Consideration is therefore, in essence, the price for which a promise is bought. Normally, a promise cannot be contractually binding unless it is supported by some form of consideration and there are numerous rules surrounding it’s successful operation. These include: consideration must move from the promisee, consideration must not be past and consideration must be sufficient but need not be adequate.
The English contract Offer and Acceptance General principles There are three basic essentials to the creation of a contract which will be recognised and enforced by the courts. These are: contractual intention, agreement and consideration. The Definition of an Offer. This is an expression of willingness to contract made with the intention (actual or apparent) that it shall become binding on the offeror as soon as the person to whom it is addressed accepts it. An offer can be made to one person or a group of persons, or to the world at large.
Tracing back the history of the freedom of contract theory, is the freedom to enter into contract(s) truly free?
This judgment given set criterion which is still been used in the modern court system and due to this case it was developed that an offer of contract can be unilateral and doesn’t have to be made to a specific party only. Also it was developed to that the acceptance of an offer does not require a notification and that once the concerned party purchases the product the contract is active then and there itself. And it was also established that purchase of an item is a fine example of consideration and therefore makes it a valid contract. (Smith, 2000).
Where a person who is in a position to dominate the will of another, enters into a contract with him, and the transaction appears, on, the face of it or on the evidence adduced, to be unconscionable, the burden of proving that the contract was not induced by undue influence shall lie upon the person in a position to dominate the will of the other.
A contract is an agreement between two parties in which one party agrees to perform some actions in return of some consideration. These promises are legally binding. The contract can be for exchange of goods, services, property and so on. A contract can be oral as well as written and also it can be part oral and part written but it is useful to have written contract otherwise issues can be created in future. But both the written as well as oral contract is legally enforceable. Also if there is a breach of contract, there are certain remedies for that which are discussed later in the assignment. There are certain elements which need to be present in a contract. These elements are discussed in the detail in the assignment. (Clarke,
In English Law consideration is one of the three main areas of an enforceable contract. It may be defined as an act, forbearance or promise made by a single party that constitutes the price for which the promise of another, is bought. In simple terms, the basic understanding of consideration may be seen as a ‘give and take’ tactic between two parties.