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15 Cards in this Set

  • Front
  • Back
What are the defenses to the validity of a contract?
Duress, Unconscionability, Mutuality, Preexisting Duty, & Past Consideration/Moral Obligation
What is the bargain principle?
The courts will not review adequacy of consideration
What does not consistute consideration?
Donative promises & Nominal Promises (Sham promise)
What is Duress?
1) Improper Threat
2) No reasonble alternative
What is unconscionability?
1)Absence of meaningful choice
2)Contract terms unreasonbly unfavorable to one party
3)Look at the circumstances existing when the contract was made.
When examining unconscionability what what circumstances do you want to examine that existed when the contrac was made?
1) Bargaining Power
2) Manner in which contract was entered
3) Business practices/standards
What are the three types of reliance damages?
1) Out of pocket costs
2)Opportunity costs
3) Expectation Measure
What is mutuality?
Both parties must be bound, or neither is bound
What is an illusory promise?
With regards to mutuality. A promise where one party does not shrink their realm of choice. Must be bilateral contract
What is a bilateral vs. unilateral promise?
Bilateral- Promise for promise

Unilateral- Promise for performance
What common types of contract raise mutuality concerns?
Contracts with:
Personal Satisfaction Clauses
Reasonable Satisfaction clauses
What is the traditional view on preexisting duty and modifications?
Modification must have new consideration.

EXCEPTION: Completed transactions & Duress
What is the modern/restatement view on preexisting duty and modifications?
Must be fair and equitable/unanticipated or reliance to extent justice requires
The exception to modification rule is waivers. What is the elements of waivers?
1) Must be only conditional
2) Not material to the contract
3) Unilateral
4) Voluntary
5)Can be retracted if notice is given and not unjust due to reliance
What is the Foakes v. Beer rule?
Partial payment of an undisputed amount does not discharge a debt.