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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.
What else can I help you with?
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 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/
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........
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 matters affects the validity of the contracts?
Key factors that affect the validity of a contract include mutual assent (offer and acceptance), consideration (exchange of value), capacity (parties must be mentally competent and of legal age), legality (must not violate laws or public policy), and proper form (some contracts require written documentation).
What circumstances would a contract be valid without any consideration?
from wawa(ums kal) :contracts under seal are valid without a consideration or perbaps
What types of contracts must be in writing?
Contracts that involve the sale or transfer of land, contracts that cannot be completed within one year, contracts for the sale of goods over a certain value, and contracts for the payment of another person's debt must be in writing to be enforceable.
Consideration need not be adequate but must sufficient or valuable discuss?
consideration need NOT be adequate but must be sufficient.
What is the function of the doctrine of consideration?
The doctrine of consideration serves as a fundamental principle in contract law, requiring that something of value be exchanged between the parties involved in an agreement. It ensures that contracts are not merely based on gratuitous promises, but rather on mutual benefit and obligation. This requirement helps to distinguish enforceable contracts from informal agreements and provides a framework for evaluating the fairness and intent behind the parties' commitments. Ultimately, consideration reinforces the idea that both parties must contribute to the contract for it to be legally binding.
What contracts must be in writing according to legal requirements?
Contracts that involve the sale or transfer of real estate, contracts that cannot be completed within one year, contracts for the sale of goods over a certain dollar amount, and contracts for the payment of someone else's debt are examples of contracts that must be in writing according to legal requirements.
