BU231 Chapter Notes - Chapter 6: Sealing Wax, Contract
Document Summary
Bu231 chapter 6: formation of a contract: consideration and intention. Bargain: each party pays a price for the promise of the other. Accepted offer will not be recognized as an enforceable contract unless it has consideration accepted offer must form a bargain. Unilateral contract: price paid for offeror"s promise is the act done by the offeree. Bilateral contract: price paid for each party"s promise is the promise of the other consideration: consideration: price for which the promise of the other is bought. As long as the promisor bargains for the other party to do something or to promise to do something that she otherwise wouldn"t do, the promisor will have received consideration. Gratuitous promise: a promise made without bargaining for or accepting anything in return. E. g. promise to make a gift and a promise to perform services without remuneration such arrangements never amount to a legal contract.
