BU231 Chapter Notes - Chapter 7: Estoppel
Document Summary
Chapter 7 formation of a contract: consideration and intention. Unilateral: the price paid for the offeror"s promise is the act done by the offeree. Adequacy of consideration: the court does not make sure the parties have made a fair bargain. If a party agreed to an inadequate consideration for his promise that was up to him. It is not the courts task to access the adequacy of the consideration. Past consideration: the promisors reason for making the promise, the motive is irrelevant, motive cannot change a gratuitous promise into a binding contract, not can it reduce a binding promise to a voluntary obligation. A third party who is not bound to pay anything may offer to pay the creditor a lesser sum if she will cancel the debt. If the creditor agrees in writing and under seal to reduce the debt. Some form of legal relationship already exists between the parties.
