BUSINESS LAW CASE 4
Thebasic elements of consideration are present in the promise by theneighbor to John. The promise has the offer component as promised bythe neighbor, and subsequent acceptance by John. This is because thepromise has a tangible consideration to the work they did indismantling the garage building (Miller & Jentz, 2011). Theexchange of John’s work in dismantling was the neighbor’s work insetting up the garage at John’s place. Moreover, the promise has amutual benefit that accrues to both the Neighbor and John.
Theneighbor could use the principle of Bargained-for Exchange as the twowill negotiate to strike an agreement for a fair compensation for him(Miller & Jentz, 2011). Through the principle of contractmodification, the neighbor could ask for more compensation for themore work he will do and more time. This will promote the equality,nature of a consideration to each
Ifthe neighbor made the promise on the way to John’s house afterdismantling the building, John would not be able to enforce thepromise. This is because the promise lacks the consideration andmutuality components of the agreement (Emerson, 2009). By this time,the neighbor would not be asking for anything in the agreement,instead it would be an offer to help. In addition, such as offerlacks the consideration that would be given to the neighbor inreturn, since they have already dismantled the building at his place.
Johncan use the “Economic Loss doctrine” to recover the profits helost when he did not do repairs for a week. This will compensate himfor the profits as the opportunity cost of the time spent ondismantling the building. However, he cannot recover this from theneighbor unless they had a prior agreement about them before the workstarted.
Emerson,R,W. (2009). BusinessLaw.New York: Barron`s Educational Series
Miller,R., & Jentz, G. (2011). BusinessLaw Today: Comprehensive: Text and Cases.Stamford: Cengage Learning