Lecture 9
Lecture 9
CONSIDERATION
BUSINESS LAW
LECTURE 9
AYESHA RAZA FAROOQ
ELEMENTS OF CONSIDERATION
NEEDS to be a “Legally Sufficient Value” and a
“Bargained-for-Exchange.”
1. “legal value” may consist of:
Promise to do something that one has no prior legal
duty to do
Performance of an action that one is otherwise not
obligated to undertake, or
Forbearance; Refraining from an action that one has a
legal right to undertake.
QUESTION
What if, in return for a promise to pay, a
person refrains from pursuing harmful
habits (a forbearance), such as the use of
tobacco and alcohol? Does such forbearance
constitute legally sufficient consideration?
Case for assignment to discuss this further
ELEMENTS OF CONSIDERATION
2. Bargained-for Exchange
✓ Reliance is substantial.
Charitable Subscriptions.