MGMT 3100 Chapter Notes - Chapter 7: Contract, Affix, Estoppel
17 Jul 2016
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Accepted offer is not enforceable contract unless it has consideration. Bargain: each party pays a price for the promise of the other. In unilateral contract, price paid for offeror"s promise is the act done by the offeree. In bilateral contract, price paid for each party"s promise is the promise of the other. Consideration: price for which the promise or act of the other is brought. As long as the promisor bargains for the other party to do something or promise to do something that they would not otherwise do, promisor will have received consideration. Consideration is necessary to make a contract legally binding. Person may make a promise to another without bargaining for anything in return. Gratuitous promise: promise made without bargaining for or accepting anything in return. Not enforceable in law even when accepted by offeree. Ex. promise to make a gift, promise to perform services without remuneration. Law does not prevent performance of gratuitous promise.
