Week 9 Flashcards
Consideration
1
Q
What is consideration?
A
The price of a promise. Something of value given to someone in return for goods/services/ or some other promise
2
Q
Can a contract be enforceable without consideration?
A
No.
3
Q
What are the theories of consideration?
A
- Benefit Detriment theory
2. Bargain Theory
4
Q
How is a deed different to a contract?
A
A deed can be enforceable without a contract
5
Q
Express can be either:
A
conditions or warranty
6
Q
When is a letter of intent legally binding?
A
When agreement occurs between parties, there is consideration, intention to create legal relations (often mentioned in a statement)
7
Q
What is a condition?
A
Major or vital term of contract. Breach - innocent party could sue.
8
Q
What is a warranty ?
A
Lesser importance than a condition. Can’t rescind contract in this case.
