Acct 215 Business Law Chapter 12

Front 1

Consideration

Back 1

the value given in return for a promise or in return for performance

Front 2

Forbearance

Back 2

The refraining from an action that one has a legal right to undertake.

Front 3

Rescission

Back 3

the unmaking of a contract so as to return the parties to the positions they occupied before the contract was made

Front 4

Adequacy of consideration

Back 4

relates to how much consideration is given and whether a fair bargain was reached

Front 5

Preexisting duty

Back 5

consideration is no legally sufficient if one is either by law or by contract under a preexisting duty to perform the action being offered as consideration for a new contract

Front 6

Past consideration

Back 6

actions or events that have already taken place do not constitute legally sufficient consideration.

Front 7

Illusory promises

Back 7

when the nature of extent of performance is too uncertain, the promis is rendered illusory and unenforceable

Front 8

Accord and satisfaction

Back 8

a debtor's offer of payment and a creditor's acceptance of a lesser amount than the creditor was originally owed.

Front 9

Release

Back 9

one party forfeits the right to pursue a legal claim against the other party

Front 10

Covenant not to sue

Back 10

an agreement to substitute a contractual obligation for some other type of legal action based on a valid claim