lesson 3: consideration, pre-existing duty, promissory estoppel and under seal Flashcards
common law requires..
consideration for a contract to be enforceable
bargain theory
mutual exchange of value
consideration is consistent with
bargain thoery
courts willing to find a contract when
there is detrimental reliance for one party or bad faith on the other
consideration can also be
benefit relieved or a detriment suffered
promise to do something – settlement agreements
given to a third party if at request of the promisor
in the currie v misa case defines consideration as_____________ and courts still use this today
right, interest, benefit, or detriment
one sided agreement =
no contract
gratuitous promises are not…
legally binding due to lack of consideration
promises to donate money are …
not enforceable due to lack of consideration
in common law, warranties …
unenforceable due to lack of privity
past action do not …
count as valid consideration
past consideration counts unless…
act was done at promisors request
parties understood it would be compensated
payment would have been legal enforceable if promised in advance
pre existing duty rule
promise to perform an existing duty is not fresh consideration
3 scenarios where pre existing legal duty arises:
- public duty
- third party
- gratuitous promise
public duty
promisor is promising to do X as their public duty
ex of public duty
firefighters are required to fight fires
third party
promisor is obligated to do X for benefit of third party
ex. of third party
Phil king is required to teach the rest of course, benefiting the university
gratuitous promise
promisor is obligated to do X as they already promised promises to do X
pre existing legal duty rule does not exist in us but does in
canada
propose of the pre existing duty rule is to prevent
coercion
if no duress, modification …
should be enforceable
absent duress is to be
enforceable
purpose of existing legal duty rule is to
prevent duress
estoppel cannot…
create new obligation only defend existing ones
proprietary estoppel can be used as…
a cause of action
promissory estoppel
cannot assert something, leas someone to believe and act on it and deny assertion made in first case
sealed contracts do not …
require consideration
if 3 conditions are met, the promise will be binder under contract law
- promise was intended to be binding
- promise was intended to be acted upon
- promise was in fact acted upon
cannot sue for
promissory estoppel
deterimnetal reliance lies at heart of
promissory estoppel
person arguing promissory estoppel must be able to show …
they altered their position based on the promise that was made to them
promissory estoppel can be considered a
pointy shield
interest in land ..
estoppel can be used of cause pf action
4 things for promissory estoppel
- pre existing legal relationship
- clear promise or representation
- detrimental reliance
- be inequitable or unjust to enforce the promise
3 things for proprietary estoppel
- must involved a property interest
- does not require pre existing legal relationship
- may be used as a cause of action
contracts under seal
signed sealed with wax and delivered
sealing of doc,
made it different than regular signed agreement
gratuitous promise under seal is
enforceable
2 special consequences under seal of contracts
- only person named in instrument under seal can sue or be sued
- limitation period for breach may be longer than reg contract
seal contracts:
must be in writing
allows people to make gratuitous promises that are legally binding
corps are no longer required for seals
