Contract Law: From Trust to Promise to Contract (HLS2X) | Introduction

July 24, 2020

Contract Law: From Trust to Promise to Contract (HLS2X) | Introduction | Promise

Photo by Dane Deaner on Unsplash

Introduction | Promise not yet completed as of July 24, 2020.

July 24, 2020

Contract Law: From Trust to Promise to Contract (HLS2X)

Introduction |Promise

Instructor Charles Fried, Beneficial Professor of Law:

My re-written lecture notes for Introduction Promise hyperlink: https://1drv.ms/b/s!Ar6iJPTO61dwxBpYUc_YtsZo-vn-?e=6SblUu

We have moved away from a simple coordinated activities in our communications, agreements, and understandings into a primitive trades amongst two (2) best friends who had planned their cooperation with one (1) another from trust, promise, and commitment overtime. In our previous lesson your best friend has promised, you, his five (5) pairs of custom-made sandals for your whole family feet in the month of June in an exchange for your one (1) pair of custom-made boots in the month of October.

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And, we will need to know each other needs which creates cooperation in order to coordinate our activities; therefore, we will need to trust one (1) another in our primitive trades exchange overtime. Now, we have reached another possible deadweight loss almost as big as our pervious online lesson first (1^st) one (1), as shown in our picture image below.

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We may be strangers to each other and, we have no reason to trust one (1) another promises. And, you know perfectly well, how those two (2) best friends have coordinate their activities in order to resolved or dealt with successfully in overcoming their primitive trades exchange agreement overtime because you have wanted, your best friend five (5) pairs of custom-made sandals in the month of June. Therefore, you will give your best friend money in an equivalence to the monetary value of your best friend five (5) pairs of custom-made sandals in a coordinated trade activity, now, in the month of June. And, when come the month of October, your best friend can buy your one (1) pair of custom-made boots from you, is considered a deadweight loss because your coordinated trade exchange will not occur with your best friend until the month of October. Remember, the deadweight loss is an economic inefficiency in allocated resources in a coordinated trade exchange activities overtime, as shown in the picture image below.

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And, your best friend did not have to rely on your one (1) pair of custom-made boots nor did you have to promise to produce, or give your best friend his one (1) pair of custom-made boots in a coordinated primitive trade activity. In fact, you may not even make custom-made boots or have one (1) pair of custom-made boots stored in your home in your best friend feet size. So, your best friend has your money in his pocket from the sale of his five (5) pairs of custom-made sandals to you and, your best friend can go to any custom-made shoes stores who has boots to sell.

So, what is money?

Money something generally accepted as a medium of exchange, a measure of value, or a means of payment. [2]

In our society, we use Monetary value types in order to measure an unit of items such as, a greenbacks (are another name for money), gold bar, or wampum shells are utilized, as an accepted types of medium for our coordinated trade activities with one (1) another is a form of an intrinsic values unit of payments. Please do not be fool by ways of those monetary value types are measure in which, all monetary value types have in common are their measurement in unit of intrinsic values that our society has placed on them, as shown in the picture image below.

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And, you will notice and analyzes one (1) ounce of gold bar in today’s stock market (as of July 23, 2020) in monetary value is trading on or about $1,953.46 per one (1) ounce onto the stock market. We all know, gold is pretty which has some industrial usages. However, gold industrial usages and, gold prettiness are not why gold is so valuable in today’s economy. Golds are so valuable because of what gold stand for in our societal standard of monetary values, as a unit of measurements in their intrinsic metal values types. And, gold metal stands for all those promises people have to make with one (1) another which are guaranteed people coordinated trade activities for a unit of measures in an intrinsic values payment of types. So, people will purchase gold in order to get their hands on the monetary value of gold intrinsic purest metal density types.

In other words, you will give, your best friend in a coordinated trade exchange activity in an intrinsic values types prospective, your payments are either in golds, wampum shells or greenbacks (monies) for his five (5) pairs of custom-made sandals in the month of June because your intrinsic values types of payments are either in golds, wampum shells or greenbacks (monies) stand for your promise to make your best friend one (1) pair of custom-made boots, or anyone else, you have promised, or you have cooperated with to make something else from a coordinated trade activities. In order to resolved or dealt with successfully in overcoming your trades exchange overtime.

Now, your best friend does not have to know you. And, you do not have to know, or care if, your best friend knows you make good custom-made boots because your best friend can buy his custom-made boots from anyone who has custom-made boots for sell with your money, now, your best friend money, you have given him for his five (5) pairs of custom-made sandals. And, you have given your best friend, as a unit of measure of an intrinsic value in type of money payment that your best friend can take your promise. In which, you have paid for his five (5) pairs of custom-made sandals in the month of June and, your best friend will put your money in his pocket from the sale of his five (5) pairs of custom-made sandals from a coordinated trade exchange activity.

You do not have to trust a person or even know the person when a person sold you his or her five (5) pairs of custom-made sandals in the month of June for nothing, nothing but money in a coordinated trade exchange activity. All, you have to do is trust that those monies given to you from another person is not counterfeit monies, or the gold is not fool's gold or fictitious golds given to you. Therefore, you see how promise is this great productive invention, and how intrinsic value measures of unit types are amplified more than you can imagine by the invention, or a later invention of monetary value types. Nobody knows when or where promise was invented. In fact, the idea of inventing promise is a little bit odd, and a little bit like saying, who invented the speech, but historians and anthropologists have accounts for the word promise when and where promise was invented, and their research are interesting. However, we are not going to cover promise in our Contract Law, massive open online course (MOOC) online lectures and tutorials.