Page 17 Flashcards

1
Q

What is sham/nominal consideration?

A

A promise made by one party that isn’t intended to be performed

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2
Q

What is an example of sham consideration?

A

If you want to give your sister your car, so you sell it to her for one dollar (consideration in name only).

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3
Q

Does nominal consideration make a conditional donative promise enforceable?

A

No, even though it looks like a bargain, fulfilling the condition is not the price of the promisor’s performance

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4
Q

How do you know if a conditional promise is donative?

A
  • donative: parties think the condition is just part of making the gift
  • bargain: parties think the condition is the price of the promise
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5
Q

If you call your friend and tell him you have a gift for him, and he must come over right away to get it, is that enforceable?

A

No, because coming over was not the price of the gift, it was just a way to make it happen

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6
Q

What can you use to prove there wasn’t a contract in donative promise situations?

A

Parol evidence

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7
Q

What are the two views about whether donative promises are enforceable?

A
  • majority: consideration has not been paid

- minority: consideration present

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8
Q

If you surrender a valid claim, can that be consideration?

A

Yes, if it is bargained for

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9
Q

If you are trying to surrender a claim that you know is unfounded as consideration, what is your duty?

A

Not to assert it

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10
Q

Contracts entered under threat will be set aside for what?

A

Duress

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11
Q

If you surrender an invalid claim as consideration, but are unsure about its validity, is that good consideration?

A

Yes, if it was asserted in good faith and if a reasonable person would believe it was well-founded

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12
Q

Under the UCC, does a promise to pay a pre-existing debt need new consideration?

A

No

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13
Q

What are two different views about promises to pay for benefits that are already received when there was no expectation of payment at the time?

A
  • Majority: enforceable, and so are promises to pay for services rendered as favours. Liable to pay reasonable value
  • Minority: promise is a rebuttable evidentiary admission of value of services
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14
Q

Forbearance to sue is valid consideration if the claimant honestly believes what?

A

That he has a valid claim, regardless of how reasonable that belief is

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15
Q

What is the best way for a donative gift to be enforced?

A

Promissory estoppel, after the promise was injuriously relied on

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16
Q

If your mom says she’ll pay for your education, so you quit your job, and then she doesn’t pay, what happens?

A

The courts will probably give damages for quitting your job, but not for the full cost of your education (based on promissory estoppel).

17
Q

What is the extent that promissory estoppel will enforce a promise?

A

To the extent of the reliance

18
Q

Promissory estoppel says that reliance is a substitute for what?

A

Consideration

19
Q

If your aunt promises to reimburse you $1000 for opera tix you will use yourself, and you buy the tickets for $500, and she refuses to pay, how much will promissory estoppel make her pay?

A
  • Williston’s view: entitled to the full extent of promised sum ($1000)
  • R2: $500, which is the extent of reliance
20
Q

Promissory estoppel can save agreements that fail for enforceability, like what?

A
  • indefiniteness
  • not complying with SOF
  • noncompliance with parole evidence rule