LAW 122 Lecture 8: LAW 122 Chapter 8
5 Dec 2015
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Document Summary
Main goal of contract law is to enforce bargains, includes offer, acceptance, and. Gratuitous promise is a promise for which nothing of legal value is given in mutual exchange of value exchange. Creation of contract depends on an exchange of value. 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: ex: if a person promises to give up smoking, drinking, or swearing, consideration must be sufficient, does not have to adequate. Adequate consideration has essentially the same value as the consideration for which it is exchanged: ex: peppercorn theory: two people create an agreement by exchanging a peppercorn for a horse. Peppercorn has some value (sufficient) but not worth as a much as a horse (adequate), the contract still is enforceable.
