Flashcards in Page 16 Deck (25):
Is past consideration sufficient to support a promise?
If you contracts to pay someone $900 a week and then a few months later, your change it to $1000 a week, is that enforceable?
No, there's no new consideration and offeree is still doing the same thing he originally agreed to
If you want to have a new contact for more money, and you want it to be enforceable, what can you do?
Rescind the old contract and enter a new one
Why can you not have a simultaneous rescission and new agreement?
Because it violates a pre-existing duty rule since parties intended the rescission to be contingent on a new contract
If a promise looks illusory because there's no definite undertaking, why is it not illusory?
Because of a superimposed obligation to use reasonable and good faith effort's. Example: agents
Why are output or requirement contracts under the UCC not illusory?
Because of obligation to produce a reasonable quantity based on prior output/requirements in good faith
What is a satisfaction condition?
Promise subject to satisfaction
What is an example of a satisfaction condition?
Offering to pay someone to paint your picture, but only if you are satisfied
Why are satisfaction conditions not illusory?
Because of an obligation of good faith, so you can only not pay if you honestly and in good faith were dissatisfied
If a debtor orally promises to pay a barred debt, why is that not enforceable?
Because it must be in writing, or part payment must of been made to be enforceable
How can part performance substitute for a signed writing?
If debtor acknowledges the past debt that in a way that implies he will pay it, and makes a partial payment, then the debt can be enforced
Does a promise to pay a debt discharged by bankruptcy need to be in writing?
Why do unilateral contract not have mutuality of consideration?
Because offeree is not bound to do anything, even if he starts performance, he doesn't have to finish
Do bilateral contracts need mutuality to be enforceable?
Yes, both parties must be bound, and if one isn't, then neither is
What is the consideration in a bilateral contract?
The promised performance
What is forging when it comes to bilateral contracts?
If there is no consideration on one side of a bilateral contract, performance can be forged into a good unilateral contract
If a party makes a promise of alternative performances, must each one be detrimental?
Yes, and if not the whole contract is void
What are conjunctive contracts?
When two things must happen
Under a conjunctive contract must both promises be detrimental?
No, only one has to be detrimental
If you agree to give someone your car if they pay a debt they owe you and paint your fence, is that enforceable?
Yes, it doesn't matter that they already owed you money, painting the fence is consideration, and both must be performed
What is an output contract?
Seller agrees to sell all of its output of a certain item to the buyer, who agrees to buy it from the seller
Requirements contracts are what?
Buyer agrees to buy all of his requirements of a stated good from the seller, who agrees to sell that amount to the buyer
Where does the consideration come from in outputs/requirement contracts?
From the buyers' surrender of power to contract with others
If I new promise to perform a duty is made under a voidable contract, is that enforceable without new consideration?