...between “sufficiency of consideration” and “adequacy of consideration”. Give an example of each. Consideration contains two parts: something of legally sufficient value must be given in exchange for a promise (often a promise for a promise), and there must be a bargained-for exchange. Legal value can be a promise, performance, modification or destruction of a legal right. Legal sufficiency of consideration involves the requirement that consideration be something of legally sufficient value in the eyes of the law. For something to be legally sufficient, consideration for a promise must be either legally detrimental to the party receiving the promise (promisee) or legally beneficial to the one making the promise (Promisor). For example, it must be legally valid. Something of legal value must be given in exchange for a promise. It may be a return promise if it is performance, that performance may be an act other than a promise, or a forbearance refraining from action. Carbone Inc., begins construction on an office building and after 4 months demands an extra $60,000 on its contract. If the extra $60,000 is not paid, he contractor will stop working. The owner of the land, finding no one else to complete the construction, agrees to pay the extra $60,000. The agreement is unenforceable because it is not supported by legally sufficient consideration. Carbone Inc., had a preexisting contractual duty to complete the building construction. Adequacy of consideration refers...
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...1. What is consideration? Consideration distinguishes contracts from gifts. It is usually broken down into something of legal value must be given in exchange for the promise. And there must be a bargained-for exchange. 2. What, in this context, is “legal sufficiency”? Something of value in terms of the law must be exchanged for consideration. 3. What is “adequacy of consideration”? Adequacy of consideration is the fairness of the bargain. For example, if you borrow $1000 with a $750 interest the next day, this would not be legal. 4. Can a preexisting duty satisfy the requirements of consideration? No 5. What are the exceptions to the preexisting duty rule? Unforeseen difficulties and recession and new contract are exceptions to preexisting duty rule 6. Can a moral obligation satisfy the requirements of consideration Yes 7. Can a promise made with respect to other events that have already occurred satisfy the requirements of consideration? No 8. What is an illusory promise? Illusory promise describes uncertainty of performance that the promisor has not definitely promised to do anything. The promise is said to be without consideration and unenforceable. 9. Discuss the doctrine of detrimental reliance, or promissory estoppel. Promissory estoppel is a doctrine that can be used to enforce a promise when the promisee has relied on the promise. For example, if a professor told a student to attend a meeting after class for extra credit, but the professor changes...
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...Nick vs John This case involves an analysis of sufficiency of consideration regarding the performance of an existing contractual duty. There is no dispute with regard to the initial contract between the two parties; the key issue here is whether John can claim the bonus of $1000 from Nick. Provided the consideration has ‘something of value in the eye of the law’ to support the bargain, the courts will not concern themselves with its adequacy and the relative values exchanged. Therefore, it can be argued that if a party does, or promises to do something, which he is already bound to do, he then provides no consideration for the promise. In Stilk v Myrick, two sailors deserted during a voyage, the master promising to apportion the deserters’ wages amongst the remaining sailors if they would sail the ship home safely. The courts held that the claim for additional wages must fail since no consideration had been provided in performing the existing contractual obligation which was to get the ship home. On this basis, it can be argued that John has performed no more than his contractual duty and Consequently;, he has no sufficient consideration for the bonus money. However, a more recent “refinement and limitation” to the rule in Stilk made In Williams v Roffey Bro & Nicholls(Contractors) Ltd , has fundamentally altered our perception of the doctrine of consideration. In this case, the defendant was a firm of builders contracted to refurbish blocks of flats, the carpentry...
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...explaining the essential elements of a contract and the applicable remedies in the event of a breach What is required for a valid offer? How can one accept an offer? What is the concept of consideration and what form(s) can consideration take in creating a contract? What factors must be considered in assessing the legal sufficiency of an offer, acceptance, and consideration in determining whether a contract is enforceable? In the event that a contract is formed and subsequently broken, what remedies are available to the non-breaching party under your state's law? explaining the essential elements of a contract and the applicable remedies in the event of a breach What are the 4 requirements of a valid contract? 1. Agreement 2. Consideration 3. Contractual Capacity 4. Legality What are the 3 elements that are necessary for an offer to be effective? 1. The offeror must have a serious intention to become bound by the offer 2. The terms of the offer must be reasonably certain or definite, so that the parties and the court can ascertain the terms of the contract 3. The offer must be communicated to the offeree What is an offer? a promise or commitment to do or refrain from doing some specified action in the future. What are the 3 exceptions to the consideration requirement? 1. Promises that induce detrimental reliance, under the doctrine of promissory estoppel 2. Promises to pay debts that are barred by a statute of limitations 3. Promises to make charitable...
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...Quitclaim Deed This Quitclaim Deed made 11/10/2010, by Diversified Property Group Inc. ("Transferor") 11022 E. Boone, Spokane Valley, Washington,99206 to: Transferor, in consideration of One Dollar and other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, remises, releases, and forever quitclaims to Transferee all of the interest of Transferor, if any, in an to that real property located in the County of Spokane, and State of Washington, and more certainly described as follows: The East 185 feet of the North 139 feet of Trac 51, Opportunity, according to Plat recorded in Volume "k" of Plats, Pages 20, 22 and 23, in the City of Spokane Valley, Spokane County, Washington Parcel NOS. 45162.0945 and 45162.0938. Subject To lien in favor of WELLS FARGO HOME MORTGAGE; and Subject To restrictive covenants, easements and encumbrances of record. To have and to hold, all and singular the described property, together with the tenements, hereditaments, and appurtenances belonging to such property, or in anywise appertaining, and the rents, issues, and profits of such property to Transferee, and Transferee's heirs and assigns forever. IN WITNESS WHEREOF, Transferor has executed this Quitclaim Deed on the date first above written. Diversified Property By: ______________________________ Acknowledgment State of ________________ ) ...
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...Florida Commission on Ethics Florida has been a leader among the states in establishing ethics standards for public officials and recognizing the right of the people to protect the public trust against abuse. The Florida Commission on Ethics is required to submit to the Legislature from time to time a report of its work and recommendations for legislation deemed necessary to improve the code of ethics and its enforcement. The Constitution provides for investigations of complaints concerning breaches of the public trust and provides that the Florida Commission on Ethics be the independent commission to conduct these investigations. The Commission on Ethics is an appointive body made up of nine members, none of whom hold any public employment or may not be employed to lobby state or local government. Five of the members are appointed by the Governor and confirmed by the Senate. No more than three of the Governor’s appointees may be of the same political party, and one must be a former city or county official. The Speaker of the House of Representatives and the President of the Senate each make two appointments to the Commission of Ethics. The two appointments must be persons with different political party affiliations. The appointees of the President and Speaker are not subject to Senate confirmation. Any member of the Commission on Ethics may be removed...
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...the better known transcendentalists, became a transcendentalist in 1832 which lead to the writing of “Self-Reliance” and “The American Scholar.” He later became the central figure of his literary and philosophical group, known as the American Transcendentalist. In the 1840’s he founded and co-edited the literary magazine The Dial. In 1841 and 1844 he published essays, including, “Self-Reliance,” “Friendship” and “Experience.” In “Self-Reliance” Emerson writes: A man should learn to detect and watch that gleam of light which flashes across his mind from within, more than the luster of the firmament of bards and sages. In “Self-Reliance”, Emerson conveys that one must follow for what they believe in. Emerson was a believer in the “divine sufficiency of the individual.” He viewed nature as “the plantations of God, a decorum and sanctity reign, and a perennial festival dressed.” His works define being a transcendentalist because they include descriptions of the profound sense of nature, human...
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...Acceptance 4 2. Consideration 5 2.1 Adequacy and Sufficiency of consideration 5 2.2 Privity of contract 5 3. Intention to create legal relations 6 3.1 Domestic arrangement 6 3.2 Commercial agreement 6 3.3 Capacity 7 PART 2 – The impact of different types of contract 8 1. Verbal contract 8 2. Written contract 8 The parol evidence rule 8 3. Implied contract 9 PART 3 – The effect and meaning of different terms of contract 10 1. Condition 10 2. Warranty 10 3. Implied term 11 CONCLUTION 12 REFERENCE 13 INTRODUCTION The assignment is the presentation about the knowledge and understanding about Aspects of Contract and Negligence for Business subjects of student. The assignment is divided into three main parts. The first part discusses about the essential elements of a valid contract, the second part discuss the impact of different types of contract and the last one demonstrates the theories applications of these term of contract in given business situation. This assignment will help student link theory to practice by applying in typical examples. It is assessed by Mr. John Andre – teacher of Aspects of Contract and Negligence for Business subjects at ITP – Banking Academy PART 1 – The essential elements required for formation a valid contract A contract is defined as an agreement which legally binds the parties (Business Law, 2010). A valid contract cannot be formed without these essentials elements: agreement, consideration, intention to create...
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...specific claims has provided your department with a good basis for where to start when a claim arises. With so many outside venders and human resource issues in today's business world, contractual claims are going to be one of the common claims that arise on a regular basis in many businesses. The next primer you will prepare for your department's training series will acclimate your colleagues to the world of contracts. Prepare a 2–3-page, double-spaced document explaining the essential elements of a contract and the applicable remedies in the event of a breach. What is required for a valid offer? How can one accept an offer? What is the concept of consideration and what form(s) can consideration take in creating a contract? What factors must be considered in assessing the legal sufficiency of an offer, acceptance, and consideration in determining whether a contract is enforceable? In the event that a contract is formed and subsequently broken, what remedies are available to the non-breaching party under your state's law? Business plans are met through voluntary agreements amongst others. These voluntary agreements are also known as contracts. A contract focuses on holding a promise that is directed towards the future. Business cannot be successful unless people fulfill their promises. There also needs to be a system of punishment to those who break their promises. Making all contracts more of an obligation to complete, which allows business to continue today. Forming a contract...
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...specific claims has provided your department with a good basis for where to start when a claim arises. With so many outside venders and human resource issues in today's business world, contractual claims are going to be one of the common claims that arise on a regular basis in many businesses. The next primer you will prepare for your department's training series will acclimate your colleagues to the world of contracts. Prepare a 2–3-page, double-spaced document explaining the essential elements of a contract and the applicable remedies in the event of a breach. What is required for a valid offer? How can one accept an offer? What is the concept of consideration and what form(s) can consideration take in creating a contract? What factors must be considered in assessing the legal sufficiency of an offer, acceptance, and consideration in determining whether a contract is enforceable? In the event that a contract is formed and subsequently broken, what remedies are available to the non-breaching party under your state's law? Business plans are met through voluntary agreements amongst others. These voluntary agreements are also known as contracts. A contract focuses on holding a promise that is directed towards the future. Business cannot be successful unless people fulfill their promises. There also needs to be a system of punishment to those who break their promises. Making all contracts more of an obligation to complete, which allows business to continue today. Forming a contract...
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...public reform have been consistently at the forefront of American minds. Welfare reform has been a major controversy in the realm of social policy. Most Americans support the idea of equality, one of the values that our nation was founded on, although there seems to be no general agreement on how the government should alleviate poverty. The American welfare system as it is in its present state degrades the beneficiaries and serves to enrich the administrators. If the objective is to reduce poverty and promote self-sufficiency then the right signals are given off but the system is failing in practice. The key to reforming would be to combine work with education and training to help attain skills to increase beyond an entry-level position. To fully reform, the government must integrate developmental efforts in the welfare, work force, education and economic development area in an effort to create a stronger state and move people out of poverty and into self-sufficiency. Welfare was introduced in 1936 under a program entitled Aid to Dependent Children and it provided cash for low-income families with children. The number of people in the household and the total monthly income was the determining factor of an individual’s eligibility. For a household consisting of 4 people, if the income were less than $643, then you would be eligible. Recipients were required to enroll in an Employment First course that taught educational, social and work ethics to move individuals to a state of...
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...if she graduates from Eagle College. Dina enrolls in Eagle, attends full-time for four years, and graduates. When Dina asks Chris for $40,000, Chris says, “I don’t remember promising you $40,000. But if there was a promise, it’s not enforceable, because we didn’t bargain for it. And even if there was a promise that would otherwise be enforceable, I revoke it now.” Can Dina enforce Chris’s “promise”? Why or why not? Starting at the beginning we must determine if this is a promise, gift or contract. Consideration distinguishes contracts from gifts. For there to be a contract there must be something of value given in exchange for the promise. In this case, Chris promised $40,000 in exchange for Dina graduating from a specific college, Eagle College. There was apparently a discussion about it that prompted Dina to enroll in and complete the course of study at that school. For the contract to be legally binding, there must be legal sufficiency and adequacy of consideration (fairness). Both the degree and the cash have value in the eyes of the law. We must however consider the fairness of the agreement, what value does Chris get from Dina’s completing school? Uncertain performance is related to promises exchanged when the performance of both parties is uncertain. Unfortunately for Dina, a promise is illusory. Illusory means based on illusion/not real. We should consider if a promissory estoppel could be put into place to enforce the promise. There are four requirements...
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...Ramos Jose I. Prof. Tantalo English 101 11/6/13 Essay 3 You’re only as Strong as Your Weakest Link Recently in Michigan there has been a reopening of a dispute traced back to the 1950’s. This argument is whether the use of affirmative action should be used when determining whether to accept or reject the request of an applicant. Affirmative Action refers to policies taken into consideration that may boost someone’s application and thus help them be accepted. These extra policies can used in jobs, universities and other similar competitive based applicable positions, normally they include race, religion or sex. These policies limit the field of applicants and thus make applying for an opening unfair to all that are not helped by it. It also helps create a wider gap in what we would want to have, equality. Instead of focusing on the helping it hides the origins of the original problem which is insufficient help to specific areas of cities, states and counties. During the year of 1978, the court case, Regents of the University of California v. Bakke was a major debate towards that of Affirmative action. Bakke was a 33 year old that had applied to UC Davis Medical School. Even though he had outstanding perquisites he was denied because of the school’s affirmative action helping minorities gain entrance even though they had lower scores. Upon learning of this Bakke decided to take the UC system to court upon which he won and was allowed attendance to the university. Traditionally...
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...M and W. The case is considered closed following consultations with the legal counsel within the house. The memo comes to inform all concerned parties that the case is officially closed. Background This memo is as a result of a litigation initiated by W on M claiming infringement of patent rights. The case started in May 2007 with W filing for a claim against M in relation to infringement on patent rights. After consideration by M, the value placed on the claim was estimated at $17million. In a jury that took place on December 31, 2007, it was found out that the rights of W had been infringed and that W deserved compensation worth $18.5 million. However, a petition filed through the appellate court in November 2009 saw the ruling reversed. W failed in a subsequent petition to have the case re-heard by the appellate judges. As such, the management of M saw it wise to consider the case settled. The case had reached a point of final consideration and the ruling by the appellate court, backed up by its decision to deny a re-hearing, had justified the consideration of the case as closed. Therefore, the financial statements had to be adjusted to cater for the items identified from the case. Authoritative Literature As per the SEC Staff Announcement, Accounting for Legal Costs Expected for covering a loss contingency, accounting for losses expected in a lawsuit requires that the expenses be registered as incurred. A number of these costs, as discussed in January 23, 1997...
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...Consideration There are many definitions of considerations but the most readily accepted is that of (Lush J in Currie v Misa) “some right, interest, benefit accruing to one party or some for bivalence, detriment, lost or responsibility given, suffered or undertaken by the other”. The price at which the promise is bought - (Dunlop v Selfridge) There are 3 types of consideration; 1. Execute; that is a promise in exchange for a performance of an act. (reward) 2. Executory; this is where there is mutual promises between the two parties, where the obligation constituting the consideration is still to be performed. 3. Pas t; where the defendant makes a promise after the act was performed. Therefore, if A out of gratitude, promises B a reward for something B had already done before A’s promise B cannot sue on the promise. B’s consideration for the promise is already over and done with, in the past. The general rule is past consideration is not consideration. (Roscorla v Thomas) Re: Mc Ardle: - however there are exceptions to the general rule; 1. Common Law Exception; past consideration will support a subsequent promise if the consideration was given at the request of the promisee. (Lampleigh v Braithwaite) N.B. In the Privy Council decision of Pao on Lau Yit Long Lord Scarmanlay down the necessary conditions to apply; a. The act must have take place at the promiser’s request. b. The parties must have understood that the act was to be remunerated, wither by...
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