lesson 8 and 9

Question 1

consideration

Answer 1

person demands must receive to make their promise legally binding

Question 2

adequacy of consideration

Answer 2

parties give and get as consideration need not be of economic value, values different people place of the same property may vary widely Ex:parada bag

Question 3

nominal consdieration

Answer 3

the token amount identified in the written contract when parties either cannot or don’t wish to state the amount precisely (value $1)

Question 4

gift

Answer 4

transfer of ownership without receiving anything in return

Question 5

forbearance

Answer 5

to not do something

Question 6

legal value

Answer 6

change in the legal position of a party as a result of a contract

Question 7

illusory promises

Answer 7

a contract contains a clause that allows you to space the legal obligation Ex: if I have time

Question 8

output and requirements contracts

Answer 8

agreement to purchase all of a particular producer’s production Ex: coal company, seller agrees to supply all of the need of a particular buyer
Ex:NLK seating

Question 9

existing public duty

Answer 9

public services cannot make promises for their regular job
Ex: police cannot collect a reward on a wanted criminal, who works for the government

Question 10

settlement of liquidated debts

Answer 10

parties agree that debt exists and on the amount of the debt
Ex: accepting less than the contract amount as full payment

Question 11

settlement of unliquidated debts

Answer 11

genuine dispute between the parties about how much is owed

Question 12

release

Answer 12

the party settles a claim at the time the tort occurs, the liability is unliquidated because the extent of the damages is uncertain

Question 13

mutual gifts

Answer 13

once something is given by one party to another without demanding anything in return the something of value isn’t consideration for anything later

Question 14

past performance

Answer 14

contractual bargaining takes place in the present for immediate future performance by both parties can not serve as consideration for a later promise

Question 15

composition with creditors

Answer 15

agree by all creditors to accept something less than the total amount of their claims as full payment

Question 16

promises to charitable organizations

Answer 16

organisation rely on those promises they can be enforceable

Question 17

promissory estoppel

Answer 17

prevent promises from stating in court didn’t receive consideration for their promises “A [promise to make a gift generally isn’t legally enforceable”

Question 18

contractual capacity

Answer 18

ability to understand the consequences of a contract

Question 19

age of majority to contract

Answer 19

the age that enlisted to manage their affairs

Question 20

minor

Answer 20

under 18, under the age of majority

Question 21

minority

Answer 21

minor, part of a person’s life before they reach the age of majority

Question 22

necessaries

Answer 22

things needed to maintain life

Question 23

emancipation

Answer 23

severing parent relationship

Question 24

scope of authority

Answer 24

within the range of contractual acts for which the organization has authorized them to be responsible

Question 25

ratification

Answer 25

acting by the party indicating intent to be bound by contract

Question 26

disaffirmance

Answer 26

protected party is to receive whatever they have put into the contract

Question 27

major commitments

Answer 27

enlist in the armed services, contracts for educational reasons, marriage contract

Question 28

banking contracts

Answer 28

can make withdrawals as if they were adults

Question 29

work-related contracts

Answer 29

most states, minors who engage in a business or trade contract disaffirm agreements involving business

Question 30

sale or realty

Answer 30

In some states, if a minor owns real property, an inheritance base, can't be disaffirmed as a sale or borrowed money agreement until after achieving the age of majority