Chapter 13

Question 1

Accord and satisfaction

Answer 1

An agreement for payment (or other performance) between two parties, one of whom has a right of action against the other. After the payment has been accepted or other performance has been made, the “accord and satisfaction“ is completed and the obligation is discharged

Question 2

Consideration

Answer 2

Generally, the value given in return for a promise or a performance. The consideration, which must be present to make the contract legally binding, must be something of legally sufficient value and bargained for

Question 3

Covenant not to sue

Answer 3

An agreement to substitute a contractual obligation for some other type of legal action based on a valid claim

Question 4

Estopped

Answer 4

Barred, impeded, precluded

Question 5

Forbearance

Answer 5

The act of reframing from exercising a legal right. And agreement between the lender and the borrower in watch the lender agrees to temporarily cease requiring a mortgage payments, delay foreclosure, or to accept smaller payments than previously scheduled

Question 6

Liquidated debt

Answer 6

A debt that is due and Certain in amount

Question 7

Past consideration

Answer 7

Something given or some act done in the past, which cannot ordinarily be consideration for a later bargain

Question 8

Promissory estoppel

Answer 8

A doctor that applies when a promisor makes a clear and definite promise on which the promisee justifiably relies; such a promise is binding if justice would be better served by the enforcement of the promise

Question 9

Release

Answer 9

A contract in which one party forfeits the right to pursue a legal claim against the other party

Question 10

Rescission

Answer 10

A remedy whereby a contract is canceled and the parties are returned to the position they occupied before the contract was made; may be affected through the mutual consent of the parties, by their conduct, or by court decree

Question 11

Unliquidated debt

Answer 11

A debt that is uncertain in amount