LAW 122 Chapter Notes - Chapter 8: Counterclaim, Estoppel, Himalaya Clause
1 Aug 2020
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Gratuitous promise promise for which nothing of legal value is given in exchange. Forbearance to sue promise to not pursue a lawsuit. Lawsuits expensive and unpredictable, very few actually decided by judges. If plaintiff would have won in court, obviously consideration on both sides of contract: plaintiff surrendered right to claim full damages, defendant paid money. Mutuality of consideration requires that each party provides consideration in return for other party"s consideration: requirement for mutuality is important to idea of past consideration. Past consideration consists of something that a party did prior to contemplation of a contract: not given in exchange for other party"s consideration, not really consideration at all, therefore, can"t support contract. Difficult to determine whether something is past consideration. If no contract, then not obligated to keep promise: company provides services before you promised to pay money, company didn"t work in exchange for promise, considered to be a good consideration rather than past.
