Business Law

1. Illusionary promise is a situation in which a part appears to commit to something but really has not committed to anything. It is not a promise and thus not consideration. Stefano had made an illusionary promise as he says he will buy the chef a vacation when he makes it big, and there is no guarantee on that. Chef cannot do anything to make it a contract as the law does not consider it “consideration” and there is no definite answer for Chef to know Stefano has made it big enough or not.

2.The Preexisting duty rule states that a promise to do something you are already obligated to do is not a valid consideration. There are two parts to the rule

1. Performance of a duty where you are obligated to do under the law such as a cop and 2. Performance of an existing contractual duty is not good consideration. The exceptions to this rule are unforeseen circumstances which may require additional work which is the second exception and third the sale of goods. The preexisting duty rule does apply here as Gwen has already promised and contracted to house Janice’s furniture for six months, no exception applies here, as she cannot ask for more money to do what is already in the contract.

3. Joe had given Vanessa an illusionary promise. She must consider the promissory estoppel to decide if it’s worth trying to collect the thousand dollars. The promissory estoppel has three conditions 1. One party makes a promise knowing the other party will rely on it. 2. The other party does rely on it and 3. The only way to avoid injustice is to enforce the promise. There is nothing Vanessa can do to get the money, as she did not go through extreme circumstances relying on that money.

4.The principle of adequate consideration falls in place is if you refrain from something you are legally entitled to do. There are four types of promises for consideration. Benefit to the promisor, detriment to the promise, a promise to do something and a promise to refrain from doing...