Chapter 13 Consideration Flashcards Preview

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Flashcards in Chapter 13 Consideration Deck (22):

Somthing of legally sufficient value may consist of the fallowing


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


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



The element of bargained for exchange distinguishes what

Contracts from gifts


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


Precasting duty

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


Unforeseen difficulties

Contract can be modified due to extraordinary difficulties that were unforeseeable

The modification must be found fair and equitable


Past consideration

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


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 promises


Option to cancel clause

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


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


Output contact

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


Two parts that consideration is broken down into

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


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

A release


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


Promissory estoppel

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


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


Shockingly inadequate consideration may indicate

Undue influence


A debt that is uncertain in amount

Unliquidated debt


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


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

You do so in good faith


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

Illusory promise


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