LAW 122 Lecture Notes - Lecture 7: Estoppel, Himalaya Clause
12 Oct 2016
School
Department
Course
Professor
Document Summary
More than just an offer and acceptance involves a mutual exchange of value. Gratuitous promise promise for nothing of legal value is given in exchange. Consideration exists when a party either gives (or promises to give) a benefit to someone else or suffers (or promises to suffer) a detriment to themselves. Sufficient consideration may be almost anything of value. For example: money, goods, land, or services but not love, affection. Adequate consideration essentially the same value as the consideration for which it is exchanged. Consideration need not be adequate courts will not save someone from a foolish bargain. The law presumed that people are able to look after their own interests, it generally allows them to decide what price they will demand under a contract. Contract will be enforced it is not a contractual defect. Refers to the peppercorn theory two people create an agreement by exchanging a peppercorn for a horse. Exchange happened but not of the same value.
