Objectives and Introduction

Objectives

Upon completion of this module, students will be able to:

  1. Describe what Consideration is and why its presence in an agreement is essential
  2. Indicate when Courts will question the adequacy of consideration
  3. Recognize that past consideration is legally no consideration at all
  4. Define capacity to contract
  5. Define the term minor and explain the circumstances under which minors may legally be held responsible for their contracts and when contracts they make with others are voidable or even void
  6. State those illegal contracts forbidden by state statutes
  7. State those illegal contracts of contracts that are partially legal and partially illegal 
Introduction

In the materials, you will discover the terms Consideration, Capacity, and Legality. Very simply, consideration is anything the other guy wants. It might be peanut butter. It might be chocolate. It might be money, and it might be diamonds and gold. It will depend upon the context. In order to make a legally binding contract, that is, a contract that will stand up in court, the parties to that contract must be of legal capacity to form that contract. Often, that capacity or lack thereof is defined by the age of majority: usually 18 years of age. But there are people who should not be accountable for the agreements into which they enter. I have included a clip from the 1988 movie, “Rainman” that graphically illustrates this point. Finally, a contract must be legal in order to have the courts enforce it. Obviously, there are jillions (that is a legal term, meaning “jillions”) of agreements performed in the world every day that have illegal purposes or objects. Illicit drug sales certainly follow rules of their own, but the courts will not recognize them. Can’t imagine someone filing a lawsuit over an illegal drug deal, though.

Last modified: Tuesday, January 3, 2017, 12:24 PM