2020 11 24 Module 3

Contract law formation hinges on the essential elements of agreement and consideration. The Gibson Principle establishes that courts analyze agreement through offer and acceptance, barring exceptional circumstances. Consideration, defined as reciprocal benefit and detriment, requires that parties provide something of value, though it need not be of equal value. While performing an existing contractual duty typically fails to constitute good consideration, *Williams and Roffey* introduces exceptions for service contracts where a practical benefit is realized. Furthermore, *Folks and Beer* dictates that part payment of a debt does not satisfy the whole debt, a principle currently under scrutiny for its potential rigidity. These foundational concepts—along with the nuances of revocation, the postal rule, and promissory estoppel—serve as the primary tools for identifying legal issues and constructing enforceable contract arguments.