Term

Hamer v. Sidway

Definition

An uncle promises his nephew $5,000 if he refrains from drinking, smoking, swearing, and gambling until age 21. The nephew complies. The issue is whether giving up legal rights constitutes valid consideration even if the promisor receives no economic benefit. — CONSIDERATION & FORMATION

Term

Scott v. Moragues Lumber

Definition

A ship owner promises to charter a specific vessel if he purchases it. He buys the vessel but then refuses to charter it. The issue is whether a conditional promise becomes binding once the condition occurs. — CONDITIONAL VS ILLUSORY PROMISES

Term

Wood v. Lucy, Lady Duff-Gordon

Definition

A fashion designer grants exclusive marketing rights in exchange for shared profits but later makes independent deals. The issue is whether exclusivity implies a duty of reasonable efforts sufficient to constitute consideration. — IMPLIED DUTIES & MUTUALITY