Book Opener

There are certain promises, however, that the courts will not enforcebecause they lack even the most basic qualities of valid consideration.Included in this category are illusory promises, promises of future gifts,promises of legacies, promises based on past consideration, promisesbased on preexisting duties, and agreements to attend social engagements.Illusory PromisesFor a binding contract to be formed, both parties must be under anobligation to do something. If this is not the case, then neither party isbound to do anything. Some contracts are illusory, meaning they appearat first glance to be contracts but on further scrutiny are revealed to behollow. Such agreements are said to involve illusory promises .Example 7. Sun-Hi and Badr reached an agreement. Sun-Hiagreed to sell Bahr any apples that he might need over a threemonthperiod. Sun-Hi and Badr developed a fixed price for allapples that might be sold during this time frame. However, becauseBadr might not order any apples within the next threemonths, he is not bound to do anything. The contract is illusory.Future GiftsIf a person promises to bestow a gift at some future time or in a will,that promise is not enforceable if no consideration is given for the promise.This rule would also include promises to provide free services or to lendsomething without asking or expecting any benefit in return.Language ArtsLatin was the language ofancient Rome and theneighboring territory ofLatium. As the RomanEmpire grew, Latin spreadthroughout Europe andother parts of theMediterranean.Many words used in thelegal profession are derivedfrom Latin. L.S., orlocus sigilli, which means“the place of the seal,” isstill used in some statesto execute a contract.Research ActivityResearch five legal termsthat have their roots inLatin. Supply the Latinroots from which thewords originated, andexplain how they arecurrently used.Past ConsiderationThe act of giving or exchanging benefits and detriments must occurwhen a contract is made. Past consideration , or consideration thattook place in the past or that is given for something that has alreadybeen done, is not regarded as legal by the courts.Example 8. In The Opening Scene, Jake promises to give Arkadia sum of money for his legal advice. However, Arkadi has alreadyadvised Jake that he does not expect payment. As a result, Jakewould have no legal obligation to pay Arkadi. Jake’s promise isthe result of Arkadi’s past performance. No consideration passedfrom Arkadi to Jake for the money. In addition, note that Jakehas actually offered to give Arkadi a gift. A promise of a gift cannotbe enforced.Preexisting DutiesIf a person is already under a legal obligation to do something, apromise to do that same thing is not consideration. These obligationsare called preexisting duties .Chapter 8: Consideration 177