Chapter 13 Consideration Flashcards Preview

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Flashcards in Chapter 13 Consideration Deck (22):
1

Somthing of legally sufficient value may consist of the fallowing

3

1) a promise to do somthing that one has no prior legal duty to do
2) the preformance of an action that is otherwise not obligated to undertake
3) the refraining from an action that one has the legal right to undertake

2

The promise of refraining from an action that one has the legal right to undertake

Forbearance

3

The element of bargained for exchange distinguishes what

Contracts from gifts

4

Shockingly inadequate consideration may raise a red flag for a court to look more closely at a bargain because it may indicate ...

Fraud, duress or undue influence

5

Precasting duty

A promise to do somthing that one already has the legal duty to do is not consideration

6

Unforeseen difficulties

Contract can be modified due to extraordinary difficulties that were unforeseeable

The modification must be found fair and equitable

7

Past consideration

Promises made in return for actions or events that have already taken place are unenforceable.

8

If terms of a contract express such uncertainty of preformance that the promisor has not deffinatly promised to do anything the promise is said to be

Illusory

Illusory promises

9

Option to cancel clause

Crests an illusory promise if the option to cancel is valid before the preformance begins

10

In a requirement contract

The buyer will purchase from the seller all of the goods of a certain type that the buyer needs or requires

11

Output contact

Buyer and seller agree that the buyer will purchase from the seller all of what the seller produces/ output

12

Two parts that consideration is broken down into

1 somthing of legally sufficient value must be given in exchange for the promise
And
2 there must be a bargained for exchange

13

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

A release

14

A release is binding if

1) the agreement is made in good faith
2) the release contract is in signed writing
3) the contract is accompanied by consideration

15

Promissory estoppel

Applied when a promise is otherwise unenforceable, such as a promise with out consideration

16

5 requirements to apply promissory estoppel

1) must be a clear definite promise
2) the promisor should have expected that the promisee would rely on the promise
3) the promisee's reasonably relied on the promise by acting or refraining from some act
4) the promisee's reliance was definite and resulted in substantial detriment
5) enforcement of the promise is nessisary to avoid injustice

17

Shockingly inadequate consideration may indicate

Fraud
Duress
Undue influence

18

A debt that is uncertain in amount

Unliquidated debt

19

When one seeks additional consideration, offering no additional consideration in return,the ----- rule prevents the party seeking the additional consideration from enforcing the agreement for the additional consideration

Précis ting duty rule

20

Sale of goods under the UCC can modify a contract with no additional consideration as long as

You do so in good faith

21

Nothing is promised, there is no consideration and no contract thus no agreement for the courts to enforce

Illusory promise

22

Some
Contracts may appear illusory but they are not

Requirement contracts: buyer agrees to buy all goods needed of a particular type

Output contract: seller agrees to sell all goods produced of a particular type