BUSINESS ADMINISTRATION
BUSINESS LAW
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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past consideration
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forebearance
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pre-existing duty
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estoppel
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Detailed explanation-1: -A promise to perform an existing duty is no consideration unless it binds one within an exact time to do or refrain from doing an exact thing. A promise cannot be a consideration unless it is exact enough to be broken.
Detailed explanation-2: -A principle under contract law that states that if a party to a contract is under a pre-existing duty to perform, then no consideration is given for any modification of the contract and the modification is therefore voidable.
Detailed explanation-3: -Definition. Justinian first defines an obligation (obligatio) in his Institutes, Book 3, section 13 as “a legal bond, with which we are bound by necessity of performing some act according to the laws of our State.” He further separates the law of obligations into contracts, delicts, quasi-contracts, and quasi-delicts.
Detailed explanation-4: -A promise to do what one already has a legal duty to do is not legally sufficient consideration under most circumstances. Promises made with consideration based on events that have already taken place are fully enforceable.