A promise will only be capable of being contractually enforced if it is either made in a deed or made in exchange for something of value, known as 'consideration'. This Practice Note considers what amounts to valid consideration. Note : settlement offers made under CPR Part 36 operate outside the general rules of contract law and are governed by the specific regime set out in CPR See Practice Notes: Part 36 offers—what are they, why make them?
For guidance on the specific requirements for documenting promises by way of a deed, see Practice Note: Deeds. Consideration is a key ingredient for an enforceable contract.
It is concerned with what one party gives or promises in exchange for a promise or performance from another party. It requires 'something of value' to be given for the promise. There is a rule that 'consideration must move from the promisee'—this means that a person to whom a promise is made can only enforce the promise if they have provided consideration for it. There is no corresponding requirement that consideration moves to the promisor.
Thus, the promisee may provide consideration by doing an act eg giving. To discuss trialling these LexisPSL services please email customer service via our online form. Free trials are only available to individuals based in the UK.
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Dawn raid—who can raid my organisation and why? Skip to main content. Sign in Contact us. Hamblin Home. In order to recover under the doctrine of promissory estoppel, four requirements must be met: Someone must make a promise. Someone else must genuinely and justifiably rely on the promise. The actions that are taken in reliance on the promise must be reasonably foreseeable to the person who makes the promise. Injustice will occur if the promise isn't enforced.
Contact Us But what if the creditor, in cashing the check, reserves the right under Section to sue for an amount beyond what the debtor is offering? Bankruptcy is, of course, federal statutory law. The rule here regarding a promise to pay after the obligation is discharged is similar to that governing statutes of limitations. Traditionally, a promise to repay debts after a bankruptcy court has discharged them makes the debtor liable once again.
This traditional rule gives rise to potential abuse; after undergoing the rigors of bankruptcy, a debtor could be badgered by creditors into reaffirmation To confirm again the validity of a promise that was discharged, as in bankruptcy. The federal Bankruptcy Act includes certain procedural protections to ensure that the debtor knowingly enters into a reaffirmation of his debt. Among its provisions, the law requires the debtor to have reaffirmed the debt before the debtor is discharged in bankruptcy; he then has sixty days to rescind his reaffirmation.
If the bankrupt party is an individual, the law also requires that a court hearing be held at which the consequences of his reaffirmation must be explained, and reaffirmation of certain consumer debts is subject to court approval if the debtor is not represented by an attorney.
Contracts governed by the Convention on Contracts for the International Sale of Goods as mentioned in Chapter 8 "Introduction to Contract Law" do not require consideration to be binding. There are some exceptions to the consideration requirement. Under statutory law, the UCC has several exceptions to the consideration requirement. No consideration is needed to revive a debt discharged in bankruptcy, and none is called for under the Convention on Contracts for the International Sale of Goods.
Previous Section. Table of Contents. Next Section. Promise Revived after Statute of Limitations Has Passed A statute of limitations The law stipulating how long after a cause of action arises that a person has to sue on it. Voidable Duties Some promises that might otherwise serve as consideration are voidable by the promisor, for a variety of reasons, including infancy, fraud, duress, or mistake.
Moral Obligation The Restatement allows, under some circumstances, the enforcement of past-consideration contracts. A promise is not binding under Subsection 1 if the promisee conferred the benefit as a gift or for other reasons the promisor has not been unjustly enriched; or to the extent that its value is disproportionate to the benefit.
Promises Enforceable without Consideration by Statute We have touched on several common-law exceptions to the consideration requirement. Under the UCC The UCC permits one party to discharge, without consideration, a claim or right arising out of an alleged breach of contract by the other party. Bankruptcy Bankruptcy is, of course, federal statutory law. International Contracts Contracts governed by the Convention on Contracts for the International Sale of Goods as mentioned in Chapter 8 "Introduction to Contract Law" do not require consideration to be binding.
Why are some promises legally binding and others not? Orthodox doctrinal categories provide only modest assistance in answering this persistent question. Conventional analysis, for example, has distinguished promises made in exchange for a return promise or performance from nonreciprocal promises. Indeed, common law "bargain theory" is classically simple: bargained-for promises are presumptively enforceable; nonreciprocal promises are presumptively unenforceable.
But this disarmingly simple theory has never mirrored reality. Contract law has ventured far beyond such narrow limitations, embracing reliance and unjust enrichment as additional principles of promissory obligation.
Thus, a promise may be enforceable to the extent that the promisee has incurred substantial costs, or conferred benefits, in reasonable reliance on the promise.
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