Beta Software Company and Gamma Sales Corporation Agree to Follow

question 35

Essay

Beta Software Company and Gamma Sales Corporation agree to follow a certain security procedure in transacting their business online. Beta fails to follow the procedure, however. Due to this failure, Beta does not detect an error in the deal, which will have a negative impact on Gamma's interest in the deal. Can Gamma avoid the effect of this error? How?

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Definitions:

Preexisting Duty Rule

A legal doctrine stating that a promise to perform something the promisor is already legally obligated to do is not consideration for a new contract.

Adequacy of Consideration

Pertains to the fairness of the value exchanged in a contractual agreement, often examined in legal disputes over contract validity.

Legally Sufficient

Having the requisite form, substance, and detail to comply with the law and withstand legal scrutiny.

Past Consideration

Consideration for a contract that has already been provided before the agreement is made, not valid as consideration in most legal systems.