contractual terms and representation Flashcards
Consideration
A contract is made between two or more parties which is legally binding on them
What are needed to make a contract
- Offer
- Acceptance
- Consideration
What must consideration have?
Value on both sides
What is executory vs executed consideration?
Executory - A promise to do something in the future
Executed - Consideration that has already been completed
is past consideration accepted in the eyes of the law?
No
What is adequate consideration?
The market value or equivalent to whatever is promised
What is sufficient consideration?
Consideration of some value in the eyes of the law, however little
What type of consideration is the law concerned with?
Sufficient consideration, NOT adequate consideration
What are binding and non binding parts of a contract?
- Terms are binding
- Representations (e.g. statements during negotiations) are NOT binding
