0
No. Executory contracts are binding once one party does what the contract requires or does something in reliance on the contract that is binding on that party. Example: A agrees to buy 1000 widgets from B next Tuesday. B orders the widgets. A says, sorry, I don't want them. Too late. The agreement is binding on A with no consideration being exchanged.
Wiki User
∙ 16y ago
Wiki User
∙ 14y agoYes. Each party has to offer something. One person offers to do work, the other person offers to pay for that work, for example.
Add your answer:
Earn +20 pts
Consideration is totally unnecessary for the formation of contracts?
Consideration is actually absolutely necessary for the formation of contracts. A contract that does not have consideration is basically invalid unless one party can show detrimental reliance.
Are all nba contracts guaranteed?
Not all NBA contracts are guaranteed. Many players must earn their roster spot to earn their money. One example of this is that first round draft picks have guaranteed contracts, but draft picks after that must make the team before or their contracts are terminated.
What does it mean by consideration must move from promisee?
In contract law, consideration is the benefit received by each party in a contract. It must move from the promisee to the promisor, meaning that the promisee must provide something of value in exchange for the promise made by the promisor for the contract to be legally binding. This ensures that both parties are giving and receiving something in the agreement.
What are specialty contracts?
Specialty contracts are also known as formal contracts, and must be signed by all the parties involved. A specialty contract must be 'signed, sealed and delivered'. An example of a specialty contract would be the deed to a house.
What are the types of consideration?
http://www.lawyer-locater.com/Business/Contracts/125/
Legal Documents: The Precise Formation of Written Contracts?
Many people need legal documents for all sorts of purposes. Perhaps someone is purchasing real estate or starting a new business. He or she likely needs to draft various written contracts that can ensure business transactions are stable and can be trusted. When creating and formulating legal documents, it is important for people to understand the basic concepts surrounding the creation of contracts. Even if one hires a lawyer to write up contracts, it is helpful for a person to thoroughly know how a contract should be created to ensure no future legal mishaps. For example, in creating an options contract, it is important for people to remember that consideration must exist for such a contract to be enforceable. The Restatement 2d C2A787(a) states than an offer is binding as an option contract if it is in writing and signed by the offeror, and also recites a purported consideration for the making of the offer, and proposes an exchange on fair terms within a reasonable time; or is made irrevocable by statute. As can be seen, consideration is an integral part of any contract. Courts in the United States have held that valid consideration is necessary for the formation of options contracts. In Board of Control of Eastern Michigan University v. Burgess, the court decided that no consideration was received in a contract for the option to purchase defendant's land. In that contract, the plaintiff had never given any form of consideration to defendant for the option contract. When the plaintiff tried to execute the option to purchase the land, the defendant refused. The court held that had the plaintiff even given one dollar for consideration, then the plaintiff could have the option to purchase the land since a contract would have been formed. Under the Statute of Frauds, there are certain legal documents and contracts that must be written. Contracts that answer to a creditor for the debt of another, contracts made in consideration of marriage, and contracts that involve that sale of land or affect interest in land must also be made in writing. Lastly, contracts that will not be performed in a one year time frame within their making also must be made in writing. In contracts for the sale of goods, the Statute of Frauds further requires that the writing must specify a quantity and the specific terms of the agreement. These are some basic concepts to consider when using legal documents and contracts.
What is a required element in all contracts by which a legal right or promise is exchanged for the act or promise of another person?
there should be a consideration for each party........
What circumstances would a contract be valid without any consideration?
from wawa(ums kal) :contracts under seal are valid without a consideration or perbaps
Consideration need not be adequate but must sufficient or valuable discuss?
consideration need NOT be adequate but must be sufficient.
What makes the contract binding?
A contract is binding when it is entered into between parties having the capacity to enter a contract, and is made in light of adequate consideration. Consideration can be defined as something of value which is a detriment to the one who gives it and a benefit to one who receives it. For example, if A promises to mow B's lawn, and B promises to pay A $50 when he finishes, the parties have exchanged consideration -- here, a promise for a promise.
Discuss the statement that All contracts are agreements but agreements are not contracts?
An agreement is one part of a contract. That is, you and the other party agree to certain terms. In order for a contract to be legally binding, in addition to the agreement, you must also have:an exchange of consideration - BOTH parties must "give" something to the other in exchange;Intent to create legal relations - both parties must intend for the contract to be legally binding;Both parties must be certain about what they are doing and there must be no important questions left unanswered.If any of these things is not true, then there is no contract. Please bear in mind that I just summarised 800 years worth of judicial history into one paragraph. As I say in all these answers - go see a lawyer.
Are all warranties unilateral contracts and are all unilateral contracts warranties?
no and no
