Chapter 15 Flashcards
(21 cards)
Consideration
required in every contract - what a person will receive in return for performing a contract obligation - mutual exchange of something of value
A benefit to the promise
a promise to stay in a job until a particular project is complete
A detriment to the promisor
a promise to your football coach to refrain from riding your motorcycle during football season
Types of consideration
a benefit to the promise, a detriment to the promisor, a promise to do something, a promise to refrain from doing something
bilateral contract
promise for a promise
unilateral contract
promise for an act
Exception to consideration
promissory estoppel
when does promissory estoppel occur
- one party makes a promise and either knows or should know that the other party with reasonable rely on it
- the other party does reasonably rely on the promise
- the only way to avoid injustice is to enforce the promise
past consideration
no consideration at all
second exception to consideration
contract under seal
when does a court look at adequacy of consideration (if it was a fair trade)
if fraud or undue influence occured
preexisting duty
performance of a duty you are obligated to do under the law is not good consideration - a promise to do something that you are already obligated to do is not valid consideration
exceptions to preexisting duty rule
unforeseen circumstances, additional work, UUC Article 2
additional work
if a party to a contract agrees to additional work, the promise to do it is valid consideration
liquidated debt
no dispute about the fact that money is owed
exception to liquidated debt
when a debtor offers different performance
unliquidated debt
the party disagree about money owed
accord and satisfaction
the parties substitute a different performance for their original duty.
accord
the promise to perform the new duty
satisfaction
the actual performance of the new duty
requirements for accord and satisfaction
1) the debt is unliquidated
2) the creditor agrees to accept as full payment less than it claims is owed
3) the debtor pays the amount they have agreed on
