Quiz 2 Flashcards
(24 cards)
consideration
something of legal value given in exchange for a promise
legal value
support for a contract when either (1) the promisee suffers a legal detriment or (2) the promisor receives a legal benefit
bargained-for exchange
exchange that parties engage in that leads to an enforceable contract
gift promise
a promise that in unenforceable because it lacks consideration
illegal consideration
a promise to refrain form doing an illegal act. such a promise will not support a contract.
illusory promise
a contract into which both parties enter but in which one or both of the parteis can choose not to perform their contractual obligation. Thus, the contract lacks consideration.
preexisting duty
something a person is already under an obligation to do. a promsie lacks consideration if a person promises to perform a preexisting duty.
past consideration
a prior act or performance. past consideration will not support a new contract. new consideration must be give.
output contract
a contract in which a seller agrees to sell al of its production to a single buyer
requirements contract
a contract in which a buyer agrees to purchas all of is requirements for an item from one seller
best-efforts contract
a contract which contains a clause that requires both of the parteis to use their best efforts to achieve the objective of the contract
accord
an agreement whereby the parties agree to accept something different in satisfaction of the original contract
satisfaction
the performance of an accord
promissory estoppel
an equitable doctrine that prevents the withdrawal of a promise by a promisor if it will adversely affect a promisee who has adjusted his or her position in justifiable reliance on the promise
infancy doctrine
a doctrine that allows minors to disaffirm most contracts they have entered into with adults
disaffirm
the act of a minor to rescind a contract under the infancy doctrine. disaffirmance may be done orally, in writing, or by the minor’s conduct.
duty of restoration
a rule that states that a minor is obligated only to return the goods or portpery he or she has received from the adult in the condition in at the time of disaffirmance
usury law
a law that sets an upper limit on the interest rate that can be charges on certain types of loans
in pari delicto
a situation in which both parties are equally at fault in an illegal contract
genuiness of assent
the requirement that a prtys assent to a contract be genuine
recission
an action to under the contract
unilateral mistake
a mistake in which only one party is mistaken about a material fact regarding the subject matter of a contract
duress
a situation in which one party threatens to do a wrongful act unless the other party enters into a contract
undue influence
take advantage of state of person.
