(1) According to the benefit-injury theory, appropriate consideration is present only if a promise is made to the benefit of the beneficiary or to the detriment of the promettant, which reasonably and fairly causes the promisor to make a promise to the promiser for something else. For example, promises that are pure gifts are not considered enforceable because the personal satisfaction that the guarantor of the promise can receive through the act of generosity is generally not considered a sufficient disadvantage to justify reasonable consideration. 2) According to the negotiation-for-exchange counterparty theory, there is reasonable consideration when a promising person makes a promise in exchange for something else. Here, the essential condition is that the promisor has received something specific to induce the promise made. In other words, the market theory for exchange differs from the harm-benefit theory in that the market theory for exchange appears to be the parties` motive for promises and the subjective mutual consent of the parties, while in the harm-benefit theory, the emphasis seems to be on an objective legal disadvantage or advantage for the parties. A true law of treaties – that is, of enforceable promises – implies the development of a market economy. If the value of an obligation does not vary over time, the concepts of ownership and infringement are reasonable, and there will be no performance of an agreement if neither party has done so, as no error has been made with respect to ownership. In a market economy, on the other hand, a person may strive today to force himself to protect himself from a change in value tomorrow; The person who receives such an obligation feels aggrieved by the fact that it is not respected, to the extent that the market value deviates from the agreed price. The concept of consideration was expanded from the original common law, as the common law theory that consideration is equivalent to a contract was somewhat limited for the following reasons: A implied contract is formed by conduct of the parties that clearly shows the intention to enter into an agreement, even if no obvious offer and/or acceptance has been clearly expressed in words or in writing. Most of the principles of the Common Law of Contracts are set out in the Reformatement of the Law Second, Contracts, published by the American Law Institute. The Unified Commercial Code, the original articles of which have been adopted in almost every state, is a set of laws that regulates important categories of contracts. The main articles dealing with contract law are Article 1 (General provisions) and Article 2 (Sale).
The sections of Article 9 (Secured Transactions) govern contracts that assign payment rights in collateral interest contracts. Contracts relating to specific activities or areas of activity may be heavily regulated by state and/or federal laws. See the law in relation to other topics dealing with specific activities or areas of activity. In 1988, the United States acceded to the United Nations Convention on Contracts for the International Sale of Goods, which today governs treaties within its scope. Contract law generally requires a person to receive consideration for making a promise or agreement. Legal considerations are a valuable asset that is exchanged between two parties at the time of a commitment or agreement. Usually, some form of consideration, either a currency exchange or a promise to refrain from any action, is required for a contract to be legally enforceable. However, for the purpose of ensuring justice or fairness, a court may enforce a promise without consideration, provided that it can reasonably be relied upon and that the use of the promise has resulted in a disadvantage for the promiser.
Roman contract law, as found in the law books of the Byzantine emperor Justinian from the 6th century AD, reflected a long economic, social and legal development. It recognized different types of contracts and agreements, some of which were enforceable, others not. Much of the history of law revolves around the classifications and distinctions of Roman law. It was only at its final stage of development that Roman law generally applied informal implementing treaties – that is, agreements that had to be respected after they were concluded. This stage of development was lost with the disintegration of the Western Empire. As Western Europe fell from an urbanized commercial society to a localized agrarian society, Roman courts and administrators were replaced by relatively weak and imperfect institutions. The other doctrine of contract law that has not emerged from the common law is the status of fraud. The Statute of Fraud, adopted by each of the fifty States, is a body of law that determines when a treaty must be written to be enforceable. Please note that Jerry does 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.
As we will see later, there are five different situations in which a contract is considered a violation of the status of fraud and is therefore void if it is not written. These are: contracts to assume the obligation of others; contracts which cannot be performed within one year; contracts for the sale, lease or mortgage of land; contracts taking into account marriage; and contracts for the sale of goods with a total value of $500 or more. The common law. The majority of treaties (i.e. Employment contracts, leases, general business arrangements) is controlled by customary state law – a body of legislation based on tradition but constantly evolving promulgated mainly by judges from court decisions over the years. The promissory note prevention process is used to allow an aggrieved party to recover from a promise. There are general elements prescribed by law for a person to be able to assert a request for forgiveness of promissory notes: a promisor, a software package and a disadvantage suffered by the promettant. An additional requirement is that the person making the claim – the promisor – must reasonably have relied on the promise. In other words, the promise was a promise on which a reasonable person would normally rely. Today, however, contract law is largely based on the jurisprudence that has been established over the past century and a half. In addition to common law and jurisprudence, two other canons of contract law are included in the discussion of this course: the Uniform Commercial Code and the Fraud Act. .