Promissory estoppel: Under the “promissory estoppel” doctrine, a promise will be enforceable without consideration if: (1) the promisee acts or forbears in reliance on the promise and (2) this action or forbearance was reasonably foreseeable by the promisor.
Is a promise made without consideration?
Promissory estoppel : Under the “promissory estoppel” doctrine, a promise will be enforceable without consideration if: (1) the promisee acts or forbears in reliance on the promise and (2) this action or forbearance was reasonably foreseeable by the promisor.
Is consideration needed to make a promise legally enforceable?
To be legally binding as a contract, a promise must be exchanged for adequate consideration . There are two different theories or definitions of consideration: Bargain Theory of Consideration and Benefit-Detriment theory of consideration.
Can an agreement be valid without consideration?
The court may, at times, declare that a contract lacks consideration for one or more of the parties involved, rendering it unenforceable. A contract may lack consideration if any of the following is true: The promise cannot legally (or practically) be offered .
Do all promises need consideration?
In order for consideration to provide a valid basis for a contract — and remember that every valid contract must have consideration — each party must make a change in their “position.” Consideration is usually either the result of: a promise to do something you’re not legally obligated to do, or.
What are two exceptions to the rule requiring consideration?
One exception to the rule requiring consideration is promissory estoppel . In a bilateral contract the considerations for each promise is a return promise. In a unilateral contract, the consideration is one partys consideration is the promise and the other partys consideration is the act.
What are the 3 requirements of consideration?
Each party must make a promise, perform an act, or forbear (refrain from doing something). 2.) Each party’s promise, act, or forbearance must be in exchange for a return promise, act, or forbearance. 3.)
What are the grounds when a contract without consideration is valid?
Offer is made for something that already has been done (“past consideration”) and therefore cannot be bargained for . One or more of the parties agreed to something he or she already was obligated to do. A promise was actually a gift, not something bargained.
What are the exceptions to the rule of consideration?
The exception to the rule of consideration squarely falls within the purview of the statute. Indian Contract Act in section 25, categorically provides for the three situations whereby the requirement of consideration ends. It is natural to love, affection, voluntary service and payment of the time-barred debt .
What is an agreement without consideration?
Without consideration, a contract cannot be enforced or is otherwise voidable (with only a very few exceptions). The exchange of value is interpreted broadly to not only include money, but property, a promise, doing something, or even not doing something.
Do both parties need consideration?
However, the general rule is that unless both parties to a contract are bound to perform , neither party is bound. [1] That is, there must be mutuality of consideration or the contract is unenforceable for lack of consideration. A contract is “illusory,” and thus unenforceable, when only a single party is bound by it.
Can consideration be a promise?
Consideration is an essential element for the formation of a contract. It may consist of a promise to perform a desired act or a promise to refrain from doing an act that one is legally entitled to do. ... Consideration must have a value that can be objectively determined.
What is a valid consideration?
Consideration is some thing of value promised by one party to another while entering into a contract. For a consideration to be valid there must be a promise from both sides . ... This means that there must be a promise by one party against the promise of the other party.
Which of the following is enforceable without consideration?
A new promise to perform a voidable obligation that has not been avoided previously is enforceable without new consideration.
What is legally sufficient consideration?
Consideration, which must be given in order to make a contract legally binding , is legally sufficient and bargained-for value, given by the promisor in return for the promisee performing or refraining from performing some act which results in a detriment to the promisee and/or a benefit to the promisor.
What is consideration in the eyes of the law?
The special word “consideration” in contract law refers to something that has value in the eyes of the law. Consideration: is an essential element to make a contract . must be provided for a contract to be legally binding .
