BU231 Lecture Notes - Lecture 8: Video On Demand, Rescission, Diminished Responsibility
Document Summary
Consideration and intention: the pruce you pay for the promise of the other, gratuitous promises are uneforcable, past consideration will not meet the test, deal is made once both parties agree. Gratuitous reduction of debt: foakes v beer, past consideration case 7. 3, fails to recognize the business reality, exceptions seal, new consideration, new party. If a new promise is made, get it signed in a contract or under seal for it to be enforcable: having a seal removes the need for consideration. If you offer the(cid:373) so(cid:373)ethi(cid:374)g i(cid:374) retur(cid:374), there is (cid:272)o(cid:374)sideratio(cid:374) a(cid:374)d thus it"s (cid:271)i(cid:374)di(cid:374)g. If you are promised something, but do not offer anything in return, there is no contract. Introducing a new party who settles the debt on behalf of another creates a new contrct: accounts receivables aare unperformed contracts, consideration you were expecting to get you have not received yet.
