Flashcards in Lecture 5 Deck (24)
what is legal consideration?
-that what a person receives or is to receive for what he does or agrees to do.
- has to be an exchange doesn't include donations or gratuitous promises
- in the eyes of the law, must exchange something of value
in order for legal consideration to be sufficient what must happen?
-it must be in the present/future, no past.
-emotional consideration is also considered insufficent because it has no value
what are the characteristics of a gratuitous promise?
- legal consideration is insufficient (not legally enforceable by law)
-ethically owe something but legally you don't
what is the exception of a gratuitous promise?
if you offer an institution a substantial amount of money and construction begins then it is enforceable and considered a contract. but it must be substantial and they must act on it
what are the 2 types of consideration?
what is sufficient consideration?
valuable contract a consideration must be sufficient to be a legal consideration
what is an insufficient consideration?
not classified as legal consideration not past consideration (emotional value = nothing) past consideration has no value
what are the three elements to accepting a contract?
what does sealed mean?
a seal on a legal document persumes the existence of the elements of legal considerations
-when signing something under a seal you are agreeing that you have had sufficient consideration
only time that the court goes behind the seal is if there is a fraud
-a document under seal is the highest form of contract
what is a formal contract?
in writing under seal (only type of formal contract)
what is a simple contract?
all other contracts (indenture, parol, spoken, express)
what is an express contract
written non-sealed contract
what goes against lawful subject matter?
1) to commit a crime
2) to commit a civil wrong
3) against public policy *(not in public interest to e
what is one type of betting contract that we are all encouraged to enter?
Insurance - you are basically betting you will die within a certain time
-they will win more than you lose
what is malum perse?
"bad within itself"
what is the lords day act?
sometimes called sunday legislation. both a federan and provincial act, contract for a sale of land on sunday is illegal also the sale of cars and homes
what constitutes being against public policy?
1) in obstruction of justice
2) in obstruction of civil service
3) in promotion of litigation
4) in restrain of marriage
5) immoral content
6) in restraint of trade
what is an example of obstruction of justice?
what is an example of an obstruction of civil service?
e.g. rewards for choosing your business instead of others
what is champerty?
investing in someone else's lawsuit and in return you get part of the compesenation
what is considered in promotion of litigation?
2) maintenance - person doesn't want to proceed in court proceedings, you promise to pay person to keep up the proceedings
what is an example of a restraint of marriage?
-offer to pay groom $25 K not to marry bride (not enforceable by law)
what are some examples of immoral content?
-a contract whose subject mater is immoral and not enforceable (this is why prostitutes collect in advance)
-a person who promises to pay for sex does not have to pay after