Class 4 - Mutuality

Question 1

Newell Mutuality

Answer 1

1. Only bilateral
2. Both or neither bound
3. Not bound if there is a “free way out”
4. Claims usually rise out of a clear promise that is argued shouldn’t be enforced because promise was illusory.
5. Courts generally find a way to enforce.

Question 2

Implied Consideration

Answer 2

1. Have moved away from strict formalism
2. “A promise may be lacking, and yet the whole writing may be instinct with obligation”
3. The acceptance of the exclusive agency was an assumption of its duties
4. “business efficacy”

Question 3

How does good faith factor in?

Answer 3

A party may be bound by good faith.