Chapter 8 Vocabulary

Front 1

Consideration:

Back 1

What a person demands and generally must receive in order to make his or her promise legally binding.

Front 2

Gift:

Back 2

Voluntary transfer of ownership without consideration.

Front 3

Donor:

Back 3

Person giving a gift.

Front 4

Donee:

Back 4

Person receiving gift.

Front 5

Forbearance:

Back 5

Refraining from doing what one has a right to do.

Front 6

Promisor:

Back 6

Person who gives the promise or action in exchange fro the promise or action of another.

Front 7

Promisee:

Back 7

Person to whom the promise or action is given in exchange for the other person's promise or action.

Front 8

Legal Value:

Back 8

Change in the legal position of a party as a result of a contract.

Front 9

Nominal Consideration:

Back 9

Token amount identified in a written contract when parties either cannot or do not wish to state the amount precisely.

Front 10

Output contract:

Back 10

Agreement to purchase all of a particular producer's production.

Front 11

Requirements Contract:

Back 11

Seller agrees to supply all of the needs of a particular buyer.

Front 12

Liquidated Debt:

Back 12

Debt for which the parties agree that the debt exists and on the amount of the debt.

Front 13

Accord & Satisfaction:

Back 13

parties agreement to change the obligation required by their original contract and the performance of the new contract.

Front 14

Release:

Back 14

Party settles as a claim at the time the tort occurs and the liability is unliquidated because the extent and damages are uncertain.

Front 15

Composition and creditors:

Back 15

Agreement by all creditors to accept something less than then the total amount of their claims as total payment.

Front 16

Past Consideration:

Back 16

Act that has already been performed cannot be consideration for a promise on the present.

Front 17

Statue of Limitations:

Back 17

State laws setting time limit for bringing a lawsuit.

Front 18

Promissory Estoppel:

Back 18

enforcement of a promise to avoid injustice by denying to the the promisor the defense of lack of consideration.