From FMOTL Wiki
A Contract is a promise (or, more usually, a pair of exchanged and mutually-dependent promises) that the Law will enforce.
But, what is a promise?
A promise is something "that can't be done there and then" ... and therefore has to be 'promised'.
Promised for the future.
If that action can be taken "there and then" ... then it would surely be taken (and "got out of the way") ... there is no need to promise.
("Could I borrow your pen a moment, please?" "Yes, here it is". No promise.
"Could I borrow your pen a moment, please?" "In a moment, when I have finished with it myself". Promise ... for the future.)
This ties in with the promise, made by the Bank of England, on all banknotes. The promise (to pay a 'sum', on demand) has to be made - because there is no such thing as that 'sum' ... thus the act cannot take place there and then ... and has to be promised for some unspecified time in the future. This is, of course, the exact equivalent of that pot of gold at the end of the rainbow!
Thus all notes of 'currency' (all 'legal tenders') are empty, worthless, meaningless, Promissory Notes (IOUs)
And (with thanks to Stefan Molyneaux) we also have the insight that:
If Human "A" makes a promise to Human "B", Human "C" is not bound by that promise.
This has enormous repercussions, because it means that nothing any Government or Parliament does, has any value whatsoever. Any promises they may make (e.g. to the European Union) DO NOT BIND ANYONE ELSE ... except the specific Ministers who are making those promises.
No-one has the right to assume they can make promises on anyone else's behalf. Without specific, individual, consent.
To say, or assume such a right, is to deny an individual's free will to make their own promises, and to control their own obligations..
For a Contract to exist, and be Lawfully binding, certain conditions must be fulfilled:
- Full Disclosure must have occurred, by both Parties, as to on what - specifically - their Promise is based. Each Party must be able to see clearly that the other is capable of fulfilling the promise, and neither Party should be left in any doubt as to what would happen should the either side's Promise be broken (during the 'life' of the Contract). It must be clear, from this disclosure, that the Contract is entered into without duress or deception.
- Contractual Consideration: Each Party must state precisely what their Promise entails (whether it is a sum of money, or work effort, etc.) It must be clear that any Contractual Consideration offered must come from the individual current resources of each Party - or must rely on some other binding, lawful, Contract. It must be clear that the Contractual Consideration cannot 'fail' in any foreseeable way. Once agreed, Contractual Consideration are fixed.
- Lawful Terms & Conditions: Which fundamentally entails all arrangements operate under the estblished principles of good faith and peaceful, civilised, behaviour.
- Indication of Intent: Which can either be hand-written Signatures OR 'performance' - which means that, having agreed everything else, one Party starts work (e.g. a Builder starts to purchase the necessary materials).
Mortgage Contracts fail to meet these requirements for the simple reason that the Contractual Considerations offered by both Parties actually only come from one Party (the so-called 'Borrower'). This is because the Borrower's Signature actually creates "the money loaned back to them". Mortgages also fail on strictly 'technical' grounds if they envoke variables - such as 'Variable Interest Rates'.