Английский язык для юристов. Предпринимательское право
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Most often, consideration takes the form of money, property, services, or benefits and sacrifices.
A promise not to sue, when there is the right to sue, is enforceable when supported by consideration. Promising not to sue is a forbearance. A promise not to sue, in exchange for an amount of money, is a customary way to settle a pending lawsuit. Settlements of this type are often preferred to expensive and time-consuming litigation.
Acceptance of an agreement not to sue, supported by consideration, terminates one's right to continue any lawsuit, at present or in the future, on the grounds described in the agreement. A promise not to sue is commonly called a release.
When charitable pledges are made to fund a specific project, the pledgee's sacrifice is carrying out that project. In this sense, pledges are considered unilateral agreements, enforceable only when accepted by commencement of the proposed project.
Problems may arise when the consideration involved in a contract is money and the parties disagree as to the amount of money that the debtor owes the creditor.
A disputed amount, or unliquidated amount, is one on which the parties never agreed. Final settlement of disputed claims may lead to misunderstanding, dispute, and lengthy negotiation. If a creditor accepts as full payment an amount that is less than the amount due, then the dispute has been settled by an accord and satisfaction. Accord is the implied or expressed acceptance of less than what has been billed the debtor. Satisfaction is the agreed-to settlement as contained in the accord. Only if the dispute is honest, made in good faith, and not superficial or trivial will the courts entertain arguments based on accord and satisfaction.
An undisputed amount, or liquidated amount, is one on which the parties have mutually agreed. Although a party may have second thoughts about the amount promised for goods or services rendered, the amount that was agreed to by the parties when they made their contract remains an undisputed amount. A partial payment in lieu of full payment when accepted by a creditor will not cancel an undisputed debt.
As a general rule, a contract is not enforceable if it lacks consideration.
Some jurisdictions have eliminated the element of consideration in a few specifically named contracts. Typical agreements falling into this category include promises bearing a seal, promises after discharge in bankruptcy, debts barred by the statute of limitations, promises enforced by promissory estoppel, and options governed by national law.
Persons discharged from indebtedness through bankruptcy may reaffirm and resume their obligations, as prompted, perhaps, by moral compulsion. The bankruptcy court must hold a hearing when a reaffirmation is intended, informing the debtor that reaffirmation is optional, not required, and informing the debtor of the legal consequences of reactivating a debt.
Laws known as statutes of limitations restrict the time within which a party is allowed to bring suit.
Under the doctrine of promissory estoppel, a promise may be enforceable without consideration. This doctrine is used, on occasion, to prevent injustice when a person changes his or her position significantly in reliance on another's promise and the promise is not fulfilled. The court will
An option is the giving of consideration to support an offerer's promise to hold an offer open for a stated or reasonable length of time. The modern trade law has made an exception to the rule requiring consideration when the offer is made by a merchant; in such cases, an offer in writing by a merchant, stating the time period during which the offer will remain open, is enforceable without consideration.
Certain promises, however, the courts do not enforce because they lack even the rudimentary qualities of valid consideration. Included in this category are illusory promises, promises of future gifts, promises of legacies, promises based on past consideration, and promises based on preexisting duties.
An illusory promise is one that does not obligate the promisor to anything. A party who makes an illusory promise is the only one with any right to determine whether the other party will be benefited in any way. An illusory promise fails to provide the mutuality of promises required in establishing consideration.
Exercise 1. Comprehension questions:
1. Explain the term detriment.
2. What does the concept of bargaining mean?
3. When aren't the parties free to negotiate privately the amount of money to be paid?
4. Which problems might arise with consideration?
5. What does statute of limitation suppose?
6. Explain the doctrine of promissory estoppel.
7. When are charitable pledges used as consideration?
Exercise 2. Find in the text English equivalents to the following:
Согласие; встречное удовлетворение; ущерб; воздержание от действия; нереальное обещание; дискреционное право; предшествующее встречное удовлетворение; залогодержатель; ранее существовавшие обязательства; лишение права возражения на основании данного обещания; отказ от права; передача права другому лицу; документ об отказе от права или о передаче права; исполнение; закон об исковой давности; недобросовестный.
Exercise 3. Consult recommended dictionaries and give words or phrases to the following definitions:
Встречное требование; зачет встречного требования; однородное требование; предпочтительное удовлетворение требований; встречное заявление; основное требование; встречное удовлетворение; удовлетворение в части; оставление без удовлетворения.
Exercise 4. Be ready to talk on one of the following topics:
1. Explain the term consideration and identify the characteristics necessary for valid consideration.
2. Describe the attitude of the court when dealing with questions that involve the adequacy of consideration.
3. Discuss the types of consideration that can be used to bind parties to one another in a contractual situation.
4. Outline the procedure that a debtor and creditor may use to settle a claim by means of accord and satisfaction.
5. Identify those agreements that may be enforceable by a court of law even though they lack consideration.