LAW 122 Chapter Notes - Chapter 8: Novation, Canadian Business, Himalaya Clause
20 Mar 2018
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Peppercorn has some value and therefore is sufficient consideration, but it certainly is not worth as much as a horse and therefore is not adequate consideration: the contract nevertheless is enforceable. Pre-existing contractual obligation owed to a 3rd party: a promise to perform a pre-existing obligation that previously arose under a contract w/ a 3rd party can be good consideration for a new contract. Issues arise when a creditor promises to forgive a debt in exchange for something less than full payment. If these 4 requirements are met the representor cannot assert their original rights with respect to the past. Privity of contract: consideration is necessary for the creation of a contract, concept of privity of contract is different, complications can arise however if the facts involve a stranger. An assignment is not absolute if it is conditional, because it depends on some uncertain event in the future: a statutory assignment is simply an alternative to an equitable assignment.
