BU231 Chapter Notes - Chapter 6: Contract, Estoppel, Accounts Receivable
Document Summary
6 formation of a contract: consideration and intention. An offer will not be recognized as an enforceable contract unless it has consideration. Consideration: the price for which the promise of the other is bought. The accepted offer must form a bargain where each party pays a price. Bargain: each party pays a price for the promise of the other. In a unilateral contract, the price paid for the offeror"s promise is the act done by the offeree. In a bilateral contract, the price paid for each party"s promise is the promise of the other. Gratuitous promise: a promise made without bargaining for or accepting anything in return. Such arrangements never amount to a legal contract. Courts have become increasingly concerned with protecting the interests of weak parties such as the consumer from unconscionable conduct. Basic principle of the law: to discourage unnecessary lawsuits and to promote certainty in the law.
