BMGT 380 Lecture 12: 380-12.docx

• School: University of Maryland
• Department: Business and Management
• Course: BMGT 380
• Professor: Reyna

Document Summary

Promise cannot be enforced unless the promisee has provided consideration (something of legal value: both sides have to give or give up something, that they didn"t already, for it to have consideration, two kinds of legal value, where an exchange for the promisor"s promise, the promisee either does something or agrees to do something he had no prior obligation to do, where the promisee doesn"t do something, or agrees not to do something, that he was legally entitled to do, there is no requirement that the act or promise have economic value (stop smoking) Adequacy of consideration: do the courts care about the amounts of consideration, general rule: no, people are free to make bargains, even if they are unfair or overvalued, three exceptions, if the inadequacy of the consideration is apparent on the face of the agreement, courts will treat the agreement as a gift, rather than a contract.