Suppose John tells Doris that he will pay her $3,000 to take care of her children for the summer. Doris quits her less lucrative summer job in favor of John`s offer, but at the last minute, John greets an international student who will do the work for free. Doris could receive compensation from John for the loss of income she had suffered by relying on her promise. Factors other than a company that makes a promise enforceable include reliance on the promisor, certain promises made in exchange for past or moral consideration, waiving non-essential terms of a business, and promises made in legally recognized special forms, such as . B promise under seal. Traditionally, courts have distinguished between unilateral and bilateral contracts by determining whether one or both parties provided consideration and when they provided the consideration. Bilateral agreements are intended to bind the two parties at the time when the parties exchange promises, since each promise in itself is considered a sufficient consideration. Unilateral contracts are binding only on the promisor and do not bind on the promisor, unless the promisor agrees by fulfilling the obligations specified in the promisor`s offer. Until the promisor complied, he did not provide any consideration under the law. Fraud Act: The basis of most modern laws that require certain promises to be made in writing to be enforceable; it was passed by the English Parliament in 1677. In the United States, although state laws vary, most require written agreements in five types of contracts: contracts to assume someone else`s obligation; contracts which cannot be performed within one year; contracts for the sale, lease or mortgage of land; contracts in exchange for marriage; and contracts for the sale of goods with a total value of $500 or more. In the event of a breach of a promise, the law provides remedies for the injured party, often in the form of financial damages or, in certain circumstances, in the form of specific execution of the promise made. Consideration: Something of value (either a promise, an action, or an object) that a promisor receives from a promisor in exchange for his or her promise.
As a result, many organizations consider consideration to be equivalent to any factor that makes a contract or promise enforceable. This concept, which equates consideration with any factor that makes a contract enforceable, is called the “enforceability factor.” For example: Please note that Jerry will not exchange his promise to pay $500 for Ben`s promise to wash the car. Instead, Jerry exchanges his promise to pay $500 for Ben to actually wash the car. Reciprocity of obligation: The agreement of both parties to be bound in any way. In particular, if you are a general manager or sole proprietor, you should be aware of the difference between an empty statement and a legally enforceable statement. The following information will help you better understand how your statements, if accepted, even tacitly, can become legally binding contracts. (1) According to the benefit-disadvantage theory, an appropriate consideration exists only if a promise is made in favour of the promisor or to the detriment of the promettant, which reasonably and fairly causes the promisor to make a promise for something else for the promisor. For example, promises that are pure gifts are not considered enforceable because the personal satisfaction that the creator of the promise may receive from the act of generosity is generally not considered a sufficient disadvantage to warrant reasonable consideration. 2) According to the theory of the counterparty of negotiation for exchange, there is a reasonable consideration when a promisor makes a promise in exchange for something else. Here, the essential condition is that something has been given to the promisor to induce the promise made. In other words, the theory of negotiation for exchange differs from the theory of harm-benefit in that the theory of negotiation for exchange appears to focus on the parties` motive for promising promises and the subjective mutual consent of the parties, while in the harm-benefit theory, the emphasis appears to be on an objective legal disadvantage or advantage for the parties.
But when John tells Doris that he will pay her $3,000 to care for her children for the summer, and Doris gives up her health insurance because she expects John to cover her, her hypothesis is not based on a promise from John. As a result, Doris cannot get compensation from John for his increased medical expenses. In still other jurisdictions, courts have simply expressed their preference for the interpretation of treaties as justification for bilateral obligations in all cases where there is no clear evidence that a unilateral treaty is intended […].