Clep Blaw Consideration And Capacity

Front 1

Define Consideration

Back 1

the inducement to enter into a contract

Front 2

Elements of Consideration

Back 2

legal sufficiency and bargained for exchange

Front 3

Define Legal Sufficiency of Consideration

Back 3

consists of either a benefit to the promisor or a detriment to the promisee

Front 4

legal benefit

Back 4

obtaining something to which on had no prior legal right

Front 5

legal detriment

Back 5

doing an act one is not legally obligated to do or not doing an act one has a legal right to do

Front 6

adequacy of consideration

Back 6

not requried where the parties have freely exchanged

Front 7

illusory promise

Back 7

promise that imposes no obligation on the promisor

Front 8

output contract

Back 8

agreement to sell all of one's production to a single buyer

Front 9

requirements contract

Back 9

agreement to buy all of ones needs from a single producer

Front 10

exclusive dealing contract

Back 10

grant to a franchisee of licensee by a manufacturer of the sole right to sell goods in a defined market

Front 11

conditional contract

Back 11

one where the obligations are contingent upon the occurrence of a stated event

Front 12

promises that are NOT illusory

Back 12

output contract, requirements contracts, exclusive dealing contract, conditional contract

Front 13

preexisting public oblications

Back 13

public duties such as those imposed by tort or criminal law are neither a legal detriment or legal benefit

Front 14

Preexisting contractual obligation

Back 14

performance of a preexisting contractual duty is not consideration

Front 15

modification of a preexisting contract

Back 15

under the common law a modification of a preexisting contract must be supported by mutual consideration; under the Code a contract can be modified without new reinstatement

Front 16

substituted contracts

Back 16

the parties agree to rescind their original contract and to enter into a new one; recission and new contract are supported by consideration

Front 17

settlement of undisputed debt

Back 17

payment of a lesser sum of money to discharge and undisputed debt (one whose existence and amount are not contested) does not constitute legally sufficient consideration

Front 18

settlement of a disputed debt

Back 18

payment of a lesser sum of money to discharge and disputed debt (one whose existence and amount are contested) is legally sufficient consideration

Front 19

Define Bargained for exchange

Back 19

mutually agreed upon exchange

Front 20

past consideration

Back 20

an act done before the contract is made is not consideration

Front 21

promise to pay debt barred by statute of limitations

Back 21

a new promise by the debtor to pay the debt renews the running of the statute of limitations for a second statutory period

Front 22

promise to pay debt discharged in bankruptcy

Back 22

may be enforceable without consideration

Front 23

voidable promises

Back 23

a new promise to perform a voidable obligation that has not been previously avoided is enforceable

Front 24

moral obligation

Back 24

a promise made to satisfy a preexisting moral obligation is generally unenforceable for lack of consideration

Front 25

Name different contracts without consideration

Back 25

promise to pay debt barred by statute of limitations, promise to pay debt discharged in bankruptcy, voidable promises, moral obligations

Front 26

promissory estoppel

Back 26

doctrine that prohibits a party from denying his promise when the promise takes action or forbearance to his detriment reasonably based upon the promise

Front 27

promises made enforceable by statute

Back 27

some gratuitous promises have been made enforceable by the statute; the Code makes enforceable (1) contract modification. 2) renunciations, 3) firm offers

Front 28

Define Minors

Back 28

person who is under the age of majority (usually 18 but can be 21)

Front 29

Minor's Liability on Contracts

Back 29

minors have no liability - minor's contracts can be voidable at the minor's option

Front 30

Disaffirmance

Back 30

avoidancce of the contract; may be done during minority and for a reasonable time after reaching majority

Front 31

Ratification

Back 31

legal sufficiency and bargained for exchange

Front 32

Minor's liability for necessaries

Back 32

minor is liable for the reasonable value of necessary items (those that reasonably supply a person's needs)

Front 33

minor's liability for misrepresentation of age

Back 33

prevailing view is that a minor may disaffirm the contract

Front 34

liability for tort connected with contract

Back 34

because minor's contract is voidable, minor is not liable for tort connected with contract. if tort and contract are intertwined that to enforce the tort, the courts must enfore the contract, the minor is not liable in tort.

Front 35

person under guardianship

Back 35

contracts made by person placed under guardianship by court order are void

Front 36

mental illness or defect

Back 36

a contract entered into by a mentally incompetent person (one who is unable to understand the nature and consequences of his acts) is voidable

Front 37

Intoxicated persons

Back 37

a contract entered into by an intoxicated person (one who cannot understand the nature and consequence of her actions) is voidable

Front 38

Persons who are legally limited in their capacity to contract

Back 38

minors, incompetent persons, intoxicated persons

Front 39

Power of avoidance

Back 39

disaffirmance

Front 40

what surrenders a minor's power of avoidance

Back 40

ratification

Front 41

restitution

Back 41

return an equivalent of what has been received so that the seller will be in approximately the same position he would have occupied had the sale not occurred

Front 42

ab initio

Back 42

from the beginning

Front 43

a minor has no power to ratify before majority - T or F

Back 43

True

Front 44

Ratification may be implied by a person's conduct - T or F

Back 44

True

Front 45

If a person is mentally incompetent than the contract is void - T or F

Back 45

False.. it is only voidable