09 Oct Consideration Can Have Legal Value If the Promisee
An example of consideration in a contract could be money paid for a service or property sold for money. Under the current law, the UCC provides for several exceptions to the obligation to pay. No consideration is required to revive a debt settled in the event of bankruptcy, and none is required under the Convention on Contracts for the International Sale of Goods. The question of what constitutes a binding treaty has received different answers throughout history and in other cultures. For example, in Roman law, a contract was binding without consideration if certain formal conditions were met. And in the Anglo-American tradition, the presence of a seal – the wax imprint affixed to a document – was once enough to make a contract binding without further consideration. The seal no longer replaces consideration, although in some States it creates a presumption of consideration; In forty-nine states, the Uniform Commercial Code (UCC) abolished the seal for contracts for the sale of goods. (Louisiana did not pass Article 2 of the CDU.) Considerations, as we have learned, are simply something of value exchanged between the parties to a contract. To qualify the consideration, it must be: Let`s look at a real court case that illustrates the concept of consideration. In 2004, the Washington State Supreme Court ruled in Labriola v. Pollard Group, Inc.
Pollard Group was a company that provided printing services to Tacoma. In 1997, the company hired Anthony Labriola as a salesman. His employment contract stipulated that he was an employee at will, which meant that he could be fired from his job at any time without giving reasons. The courts do not consider the suitability of the consideration, but (with a few exceptions) require the promisor to suffer a legal disadvantage (waiving a legal claim he has – waiving something) in order to obtain the negotiated advantage. Waiving the right to bring an action is a legal disadvantage, and the problem arises when analyzing different types of dispute settlement agreements (agreement and satisfaction): the obligation to pay the full amount that a creditor demands for a liquidated debt, an outstanding debt and a disputed debt. If unforeseen difficulties arise, a debtor is entitled to additional compensation (consideration) to resolve them, either because the contract is modified or because the parties have entered into a novation, but no additional consideration is due to someone who fulfils an already existing obligation or prohibits from fulfilling what he is legally obliged to do, not to be satisfied. When a promising person makes an illusory promise, he gives no consideration and no contract is concluded; But exclusive trade agreements, on-demand contracts and production contracts are not treated as illusory. There are a number of common questions about whether there is consideration in a contract: consideration is something of value exchanged between the parties to a contract.
Considerations can be a lot of things like money, ownership, service, job performance or a promise not to do something. As long as the contracting parties exchange something valuable with each other, there is something in return. Offer and acceptance go hand in hand. One party makes an offer and the other party must accept that offer. The consideration in contract law is the value indicated for the offer and acceptance. For example, a person offers a friend $100 for a used laptop. If the friend accepts the offer, the $100 is a counterpart to the laptop from his point of view, and the laptop serves in exchange for the person`s $100. A court of appeal cannot judge the credibility of witnesses. We have not seen or heard them.
[Quote] Accordingly, we refer this case back to the Court of First Instance for additional factual findings on the basis of the files already available. The reason why both exist in common law jurisdictions is considered by leading scholars to be the result of the combination of two different sons by 19th century judges: First, the requirement of consideration was at the heart of the action of Assumpsit, who had grown up in the Middle Ages and remained the normal trial for breach of a simple treaty in England and Wales. until 1884, the old forms of action were abolished; Secondly, the concept of agreement between two or more parties as the essential legal and moral basis of the contract was used in all legal systems by the French writer Pothier from the 18th century onwards. It was widely read by English judges and jurists (especially after its translation into English in 1805). The latter fit well with the fashionable theories of the will of the time, particularly John Stuart Mill`s influential ideas on free will, and was grafted onto the traditional common law requirement to support a presumption trial. [26] Since the consideration for these option contracts is nominal, considering them in the written deed is generally a mere formality and is often never paid; Indeed, the recital of the nominal consideration is incorrect. Nevertheless, the courts will execute the contract – precisely because the recital has become a formality and no one opposes the masquerade. Moreover, it would be quite easy to overturn an option based on nominal consideration by falsifying oral testimony that the dollar was never paid or received.
In a competition between oral testimonies, where the incentive to lie is strong and where there is a written document that clearly contains the agreement of the parties, the courts prefer the latter. As section 11.4.1 “Consideration of an Option,” Board of Control of Eastern Michigan University v.