BU231 Chapter Notes - Chapter 6: Broken Pencil, Estoppel, Quantum Meruit
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An accepted offer will not be recognized as an enforceable contract unless it has consideration: the accepted offer must form a bargain. Each party pays a price or gives value for the promise of the other. = the price for which the promise of the other is bought. = a promise made without bargaining for or accepting anything in return. But cannot demand for the gifts back unless under undue influence. Consideration does not have to be of equal value. Can be a dollar/ broken pencil for something much more valuable it is a dollar/ broken pencil they would not have had before the contract. Court will only examine the adequacy of consideration if there is some allegation of wrongdoing by a party. Ie. if evidence points to fraud, duress or undue influence exerted on the promisor. Consideration is the price that makes the promisor"s promise binding. Past consideration = a gratuitous benefit previously conferred upon a promisor.