Quiz 9: Consideration, Capacity, and Legality
An executory contract is a contract that has not been fully performed. In the instant case the original contract is executory. The facts show by their actions that the parties rescinded it and agreed to a new contract. It is possible that had the party broken the contract to accept a contract with another employer there could be a liability for breach.
Consideration: Each and every legal system will comprise of several promises enforcement for which will be done and certain other promises enforcements of which won't be done. Just because a promise has been made does not give a guarantee of enforcing them. As per the common law a key base for the enforcement of the promises are consideration. Consideration can generally be defined as those values that are given against the promises that are made. For the legal sufficiency of a consideration certain facts have to be kept in mind, they have been mentioned below: i) A promise made for the completion of some work that does not involve a person having made any previous legal duty to do, for example payment on a receipt for some specific goods. ii) To refrain oneself from doing an action that a person has the legal right to do. iii) Those actions being performed that a person is not obliged to do.
Consideration: Contract is an agreement that is entered into by two or more parties voluntarily that can be enforced in court. It is made to perform a promise in the future. Consideration is one of the crucial elements of a contract. Anything that is given in exchange of the promise is termed as Consideration. A consideration can be called legally sufficient when it poses any following conditions: • It is a promise to do something which is not one's legal duty to do otherwise. • It is an act that is not obliged to perform if otherwise. • It refrains one to exercise his legal right, which he would enjoy if such contract was not present. Note that your students can find the answers to the even-numbered This may include (1) a promise to do something that one has no prior legal duty to do, (2) the performance of an act that one is otherwise not obligated to do, or (3) the refraining from an act that one has a legal right to do.