Business Law- Chapter 11 Flashcards Preview

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Flashcards in Business Law- Chapter 11 Deck (12):
1

Consideration

Something of legal value given in exchange for a promise.

2

Legal Value

Support for a contract when either 1. the promisee suffers a legal detriment or 2. the promisor receives a legal benefit.

3

Bargined-for-exchange

Exchange that parties engage in that leads to an enforceable contract.

4

Gift Promise

A promise that is unenforceable because it lacks consideration.

5

Illegal Consideration

A promise to refrain from doing an illegal act. Such a promise will not support a contract.

6

Illusory Promise

A contract into which both parties enter but one or both of the parties can choose not to perform their contractual obligations. Thus the contract lacks consideration. Also known as an illusory contract.

7

Moral Obligation

A sense of honor that prompts a person to make a promise. Promises made out of a sense of moral obligation lack consideration.

8

Preexisting Duty

Something a person is already under an obligation to do. A promise lacks consideration if a person promises to perform a preexisting duty.

9

Past Consideration

A prior act or performance. Past consideration will not support a new contract. New consideration must be given.

10

Accord

An agreement whereby the parties agree to accept something different in satisfaction of the original contract.

11

Satisfaction

The performance of an accord.

12

Promissory Estoppel

An equitable doctrine that prevents the withdrawal of a promise by a promisor if it will adversely affect a peromisee who has adjusted his or her position in justifiable reliance on her promise.