Issue I am having with "loans"

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Cavalier-336

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Issue I am having with "loans"

Postby Cavalier-336 » Fri Jun 23, 2017 5:43 pm

If A loaned B $1,000 without interest, would you consider this a legal contract?

Or does it lack consideration?

I believe it lacks consideration. If A were to have received interest on the loan, then I could see it, but not here.

Certainly A could use an unjust enrichment theory or promissory estoppel theory.

I would appreciate your thoughts.

Paul Revere

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Re: Issue I am having with "loans"

Postby Paul Revere » Fri Jun 23, 2017 6:41 pm

Cavalier-336 wrote:If A loaned B $1,000 without interest, would you consider this a legal contract?

Or does it lack consideration?

I believe it lacks consideration. If A were to have received interest on the loan, then I could see it, but not here.

Certainly A could use an unjust enrichment theory or promissory estoppel theory.

I would appreciate your thoughts.


I assume by "loan" you mean that B promises to repay the $1,000 at a later date. That promise to perform is the consideration A receives in exchange for $1,000. As long as the contract isn't unconscionable or void/voidable for some other reason, the law doesn't care about the "adequacy of consideration." Or maybe I'm misunderstanding and you're asking for an explanation as to why the adequacy of consideration isn't important...?

TEIAM

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Re: Issue I am having with "loans"

Postby TEIAM » Fri Jun 23, 2017 9:25 pm

Cavalier-336 wrote:If A loaned B $1,000 without interest, would you consider this a legal contract?

Or does it lack consideration?

I believe it lacks consideration. If A were to have received interest on the loan, then I could see it, but not here.

Certainly A could use an unjust enrichment theory or promissory estoppel theory.

I would appreciate your thoughts.

Did you go to law school?

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kellyfrost

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Re: Issue I am having with "loans"

Postby kellyfrost » Fri Jun 23, 2017 10:01 pm

Cavalier-336 wrote:If A loaned B $1,000 without interest, would you consider this a legal contract?

Or does it lack consideration?

I believe it lacks consideration. If A were to have received interest on the loan, then I could see it, but not here.

Certainly A could use an unjust enrichment theory or promissory estoppel theory.

I would appreciate your thoughts.



Save this argument for when you start practicing:

I believe it lacks consideration. If A were to have received interest on the loan, then I could see it, but not here.

You made need it for a brief or a motion at some point in your career.

However, that will be a wrong answer choice on the bar exam.
Last edited by kellyfrost on Sat Jan 27, 2018 1:32 pm, edited 1 time in total.

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Bass

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Re: Issue I am having with "loans"

Postby Bass » Fri Jun 23, 2017 10:32 pm

Cavalier-336 wrote:If A loaned B $1,000 without interest, would you consider this a legal contract?

Or does it lack consideration?

I believe it lacks consideration. If A were to have received interest on the loan, then I could see it, but not here.

Certainly A could use an unjust enrichment theory or promissory estoppel theory.

I would appreciate your thoughts.


There is also the concept of carrying cost - holding onto the assets of another person is a valuable service 8)

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jkpolk

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Re: Issue I am having with "loans"

Postby jkpolk » Fri Jun 23, 2017 10:35 pm

Bass wrote:
Cavalier-336 wrote:If A loaned B $1,000 without interest, would you consider this a legal contract?

Or does it lack consideration?

I believe it lacks consideration. If A were to have received interest on the loan, then I could see it, but not here.

Certainly A could use an unjust enrichment theory or promissory estoppel theory.

I would appreciate your thoughts.


There is also the concept of carrying cost - holding onto the assets of another person is a valuable service 8)

there is a man who could solve this with one punch

InterAlia1961

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Re: Issue I am having with "loans"

Postby InterAlia1961 » Mon Jun 26, 2017 4:43 pm

TEIAM wrote:
Cavalier-336 wrote:If A loaned B $1,000 without interest, would you consider this a legal contract?

Or does it lack consideration?

I believe it lacks consideration. If A were to have received interest on the loan, then I could see it, but not here.

Certainly A could use an unjust enrichment theory or promissory estoppel theory.

I would appreciate your thoughts.

Did you go to law school?


My thought exactly.



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