4 ms·
This is actually a useful legal rule to know, for everyone. An agreement isn't binding unless both sides get something. The "peppercorn" is the legal minimum,
by jalapenos 4y ago
This is actually a useful legal rule to know, for everyone.
An agreement isn't binding unless both sides get something. The "peppercorn" is the legal minimum, but this is still the reason, for instance, that saying "yes I promise to do X" doesn't by itself create contracts all over the place. A trade, even if it's only nominal, must take place.
- ElfinTrousers 4y agoMany many years ago I bought a friend's old car for $1, saving her the trouble of junking it and giving me some semi-working wheels. I actually paid about 80 cents too much for that car, but that's neither here nor there.
- deleted 4y ago[deleted]
- mminer237 4y agoTechnically, you don't even have to get something yourself either. Just requiring the other party to do or not do something is enough even if it doesn't materially benefit you at all. The law school case demonstrating this is Hamer v. Sidway: https://matthewminer.name/law/briefs/1L/1st+Semester/LAW+505-002+%E2%80%93+Contracts+I/Hamer+v.+Sidway+(2) https://matthewminer.name/law/briefs/1L/1st+Semester/LAW+505... There, an uncle promised to pay his nephew the equivalent of $170,000 if his nephew promised to not drink, smoke, or play cards or billiards, and the court upheld the contract.