Contract Law Directions Essay
Under the law of consideration, there are elements of a contract that has to be taken into account such as: Legal Value – something of legally sufficient value must be given in exchange of the promise, and Bargained-for Exchange – the bargain belt between the involved parties.
It is noticeable that there is a lack of consideration; knowing that Daniel didn’t ask for the couple’s assistance and care. This is a good example of a Past Consideration, whereas the court treats it as unenforceable. This is of no consideration because the act occurred before the contract has been made. It was Fred who wants to return the favour to the couple as a token of appreciation for their act towards Daniel. The court determines this contract as “gift.”
In addition, the amount stated in the letter can be referred to as unliquidated debt – a debt for which the amount is undecided and unfixed. But the fact that the couple had a dispute for the amount to be received after accepting the offer, Accord and Satisfaction comes into play – both debtor and creditor agree on a lesser amount than what is originally owed. Since Fred sent a letter promising to pay
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On the other hand, an agreement should occur in order to validate the dispute, and for satisfaction to be achieved. This scenario requires deep dive examination in order to determine if the dispute of the couple is valid or not. Both parties must agree on the amount that needs to be settled. The couple has the right to hold Fred liable for the amount indicated on the letter, and may not ask for more.
The act has been made so there shouldn’t be any unexpected difficulties that may cause adjustment of the amount previously accepted by the couple. A court may decide to or not to apply the pre-existing rule in a contract. An unforeseen difficulty can only be applied, and may change the existing agreement if the act is currently happening or may occur in the future and not in the past.
Taylor, R. and Taylor D. (2007), Contract Law Directions, NY: Oxford University Press Inc.