Chapter 12

Question 1

Legally sufficient consideration

Answer 1

Mutual inducements of legally sufficient value exchanged by the promisor and the promisee

Makes it legally enforceable

Question 2

Elements of valid consideration

Answer 2

1. Concurrent bargained for exchange between the parties

2. Inducements exchanged are of legally sufficient value

Question 3

Concurrent bargained for exchange

Answer 3

Parties promise to exchange inducements now or at a definite time

Question 4

Moral duty

Answer 4

Promise based on love or affection not sufficient

Question 5

Past consideration

Answer 5

Promise based on something already done not sufficient

Question 6

Pre-existing duty rule

Answer 6

Performance of a duty already owed by contract or law in return for a beneficial change not sufficient

Question 7

Exceptions to pre-existing duty rule

Answer 7

1. Mutual voluntary rescission or
2. Both parties receive beneficial exchange or
3. Claim by a party of an unforeseen change in circumstances causing extreme hardship

Question 8

Accord

Answer 8

Agreement to make a partial payment

Question 9

Promissory estoppel

Answer 9

1. Reasonably clear and definite promise made by promisor
2. Justified substantial reliance on promise by promisee
3. Justice best served by enforcing promisors promise

Question 10

Consideration

Answer 10

The value given in return for a promise

Question 11

Rescission

Answer 11

The unmaking of a contract

Question 12

Past consideration

Answer 12

An act that takes place prior to the contract that cannot be consideration later for that contract

Question 13

Accord and satisfaction

Answer 13

Where a debtor offers to pay a lesser amount than the creditor purports to be owed

Question 14

Release

Answer 14

An agreement in which one party gives up the right to pursue a legal claim against another party

Question 15

Estopped

Answer 15

Barred, impeded, precluded