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23 Cards in this Set
- Front
- Back
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Legal Sufficiency |
consists of either a benefit to thepromisor or a detriment to the promisee |
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LegalBenefit |
obtainingsomething to which one had no prior legal right can be a promise also |
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Legal Detriment |
doing an act one is not legally obligated to do or not doing an act that one has a legal right to do promising not to drink for 6 months if you're the legal age |
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Adequacy |
not required where the parties havefreely agreed to the exchange you don’tever have to weigh whetherthe deal is good or bad |
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Illusory Promise |
promise that imposes no obligationon the promisor |
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Not Illusory Promises |
- output contract - requirements contract - exclusive dealing contract |
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Conditional Promise (under adequacy) |
acontract in which the obligations are contingent upon the occurrence of astated event |
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OutputContract |
agreementto sell all of one’s production to a single buyer Buying all of someone’s corn for your resturant |
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RequirementsContract |
agreementto buy all of one’s needs from a single producer Iagree to buy, he agrees to sell me |
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Exclusive Dealing Contract |
grantto a franchisee or licensee by a manufacturer of the sole right to sell goodsin a defined market if Iam the only one who can buy the cornin Mecosta county |
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Preexisting Public Obligations |
public duties such as those imposedby tort or criminal law are neither a legal detriment nor a legal benefit performance of a preexistingcontractual duty is not consideration |
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Modificationof a Preexisting Contract |
underthe common law a modification of a preexisting contract must be supported bymutual consideration under the Code a contract can be modified without newconsideration |
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SubstitutedContracts |
theparties agree to rescind their original contract and to enter into a new one rescission and new contract are supported by consideration |
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Settlementof an Undisputed Debt |
paymentof a lesser sum of money to discharge an undisputed debt (one whose existenceor amount is not contested) does not constitute legally sufficientconsideration Liquidated = undisputed |
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Settlementof a Disputed Debt |
paymentof a lesser sum of money to discharge a disputed debt (one whose existence oramount is contested) is legally sufficient consideration read about in book |
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Bargained-For Exchange |
a mutually agreed-upon exchange |
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Past Consideration |
an act done before the contract ismade is not consideration |
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Promiseto Pay Debt Barred by the Statute of Limitations |
a newpromise by the debtor to pay the debt renews the running of the statute for asecond statutory period if jessica owes $1,000(6 years) to me, and it has been 7 years and she says “I promise to pay it” you give them another 6 years unenforceable |
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Promiseto Pay Debt Discharged in Bankruptcy |
maybe enforceable without consideration If you promise to pay your debt back, it still exists |
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VoidablePromises |
a newpromise to perform a voidable obligation that has not been previously avoidedis enforceable if you promise to do something that as voidable,you don’tneed consideration |
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MoralObligation |
apromise made to satisfy a preexistngmoral obligation is generally unenforceable for lack of consideration |
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Contracts Without Consideration |
Promissory Estoppel Promises under seal Promises made enforceable by statute - the Code makes enforceable (1)contract modifications, (2) renunciations, and (3) firm offers |
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