lesson 3: consideration, pre-existing duty, promissory estoppel and under seal

Question 1

common law requires..

Answer 1

consideration for a contract to be enforceable

Question 2

bargain theory

Answer 2

mutual exchange of value

Question 3

consideration is consistent with

Answer 3

bargain thoery

Question 4

courts willing to find a contract when

Answer 4

there is detrimental reliance for one party or bad faith on the other

Question 5

consideration can also be

Answer 5

benefit relieved or a detriment suffered

promise to do something – settlement agreements

given to a third party if at request of the promisor

Question 6

in the currie v misa case defines consideration as_____________ and courts still use this today

Answer 6

right, interest, benefit, or detriment

Question 7

one sided agreement =

Answer 7

no contract

Question 8

gratuitous promises are not…

Answer 8

legally binding due to lack of consideration

Question 9

promises to donate money are …

Answer 9

not enforceable due to lack of consideration

Question 10

in common law, warranties …

Answer 10

unenforceable due to lack of privity

Question 11

past action do not …

Answer 11

count as valid consideration

Question 12

past consideration counts unless…

Answer 12

act was done at promisors request

parties understood it would be compensated

payment would have been legal enforceable if promised in advance

Question 13

pre existing duty rule

Answer 13

promise to perform an existing duty is not fresh consideration

Question 14

3 scenarios where pre existing legal duty arises:

Answer 14

1. public duty
2. third party
3. gratuitous promise

Question 15

public duty

Answer 15

promisor is promising to do X as their public duty

Question 16

ex of public duty

Answer 16

firefighters are required to fight fires

Question 17

third party

Answer 17

promisor is obligated to do X for benefit of third party

Question 18

ex. of third party

Answer 18

Phil king is required to teach the rest of course, benefiting the university

Question 19

gratuitous promise

Answer 19

promisor is obligated to do X as they already promised promises to do X

Question 20

pre existing legal duty rule does not exist in us but does in

Answer 20

canada

Question 21

propose of the pre existing duty rule is to prevent

Answer 21

coercion

Question 22

if no duress, modification …

Answer 22

should be enforceable

Question 23

absent duress is to be

Answer 23

enforceable

Question 24

purpose of existing legal duty rule is to

Answer 24

prevent duress

Question 25

estoppel cannot...

Answer 25

create new obligation only defend existing ones

Question 26

proprietary estoppel can be used as...

Answer 26

a cause of action

Question 27

promissory estoppel

Answer 27

cannot assert something, leas someone to believe and act on it and deny assertion made in first case

Question 28

sealed contracts do not ...

Answer 28

require consideration

Question 29

if 3 conditions are met, the promise will be binder under contract law

Answer 29

1. promise was intended to be binding 2. promise was intended to be acted upon 3. promise was in fact acted upon

Question 30

cannot sue for

Answer 30

promissory estoppel

Question 31

deterimnetal reliance lies at heart of

Answer 31

promissory estoppel

Question 32

person arguing promissory estoppel must be able to show ...

Answer 32

they altered their position based on the promise that was made to them

Question 33

promissory estoppel can be considered a

Answer 33

pointy shield

Question 34

interest in land ..

Answer 34

estoppel can be used of cause pf action

Question 35

4 things for promissory estoppel

Answer 35

1. pre existing legal relationship 2. clear promise or representation 3. detrimental reliance 4. be inequitable or unjust to enforce the promise

Question 36

3 things for proprietary estoppel

Answer 36

1. must involved a property interest 2. does not require pre existing legal relationship 3. may be used as a cause of action

Question 37

contracts under seal

Answer 37

signed sealed with wax and delivered

Question 38

sealing of doc,

Answer 38

made it different than regular signed agreement

Question 39

gratuitous promise under seal is

Answer 39

enforceable

Question 40

2 special consequences under seal of contracts

Answer 40

1. only person named in instrument under seal can sue or be sued 2. limitation period for breach may be longer than reg contract

Question 41

seal contracts:

Answer 41

must be in writing allows people to make gratuitous promises that are legally binding corps are no longer required for seals