Lecture 5

Question 1

what is legal consideration?

Answer 1

• that what a person receives or is to receive for what he does or agrees to do.
• has to be an exchange doesn’t include donations or gratuitous promises
• in the eyes of the law, must exchange something of value

Question 2

in order for legal consideration to be sufficient what must happen?

Answer 2

• it must be in the present/future, no past.

- emotional consideration is also considered insufficent because it has no value

Question 3

what are the characteristics of a gratuitous promise?

Answer 3

• legal consideration is insufficient (not legally enforceable by law)
• ethically owe something but legally you don’t

Question 4

what is the exception of a gratuitous promise?

Answer 4

if you offer an institution a substantial amount of money and construction begins then it is enforceable and considered a contract. but it must be substantial and they must act on it

Question 5

what are the 2 types of consideration?

Answer 5

1) sufficient

2) insufficient

Question 6

what is sufficient consideration?

Answer 6

valuable contract a consideration must be sufficient to be a legal consideration

Question 7

what is an insufficient consideration?

Answer 7

not classified as legal consideration not past consideration (emotional value = nothing) past consideration has no value

Question 8

what are the three elements to accepting a contract?

Answer 8

1) signed
2) delivered
3) sealed

Question 9

what does sealed mean?

Answer 9

a seal on a legal document persumes the existence of the elements of legal considerations
-when signing something under a seal you are agreeing that you have had sufficient consideration
only time that the court goes behind the seal is if there is a fraud
-a document under seal is the highest form of contract

Question 10

what is a formal contract?

Answer 10

in writing under seal (only type of formal contract)

Question 11

what is a simple contract?

Answer 11

all other contracts (indenture, parol, spoken, express)

Question 12

what is an express contract

Answer 12

written non-sealed contract

Question 13

what goes against lawful subject matter?

Answer 13

1) to commit a crime
2) to commit a civil wrong
3) against public policy *(not in public interest to e

Question 14

what is one type of betting contract that we are all encouraged to enter?

Answer 14

Insurance - you are basically betting you will die within a certain time
-they will win more than you lose

Question 15

what is malum perse?

Answer 15

“bad within itself”

Question 16

what is the lords day act?

Answer 16

sometimes called sunday legislation. both a federan and provincial act, contract for a sale of land on sunday is illegal also the sale of cars and homes

Question 17

what constitutes being against public policy?

Answer 17

1) in obstruction of justice
2) in obstruction of civil service
3) in promotion of litigation
4) in restrain of marriage
5) immoral content
6) in restraint of trade

Question 18

what is an example of obstruction of justice?

Answer 18

bribery contract

Question 19

what is an example of an obstruction of civil service?

Answer 19

e.g. rewards for choosing your business instead of others

Question 20

what is champerty?

Answer 20

investing in someone else’s lawsuit and in return you get part of the compesenation

Question 21

what is considered in promotion of litigation?

Answer 21

1) champerty
2) maintenance - person doesn’t want to proceed in court proceedings, you promise to pay person to keep up the proceedings

Question 22

what is an example of a restraint of marriage?

Answer 22

-offer to pay groom $25 K not to marry bride (not enforceable by law)

Question 23

what are some examples of immoral content?

Answer 23

• a contract whose subject mater is immoral and not enforceable (this is why prostitutes collect in advance)
• a person who promises to pay for sex does not have to pay after

Question 24

what are some examples of being in restraint of trade?

Answer 24

-a contract may be legal but any clause that restraints trade is not enforceable by law