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15 Cards in this Set
- Front
- Back
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What are the defenses to the validity of a contract?
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Duress, Unconscionability, Mutuality, Preexisting Duty, & Past Consideration/Moral Obligation
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What is the bargain principle?
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The courts will not review adequacy of consideration
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What does not consistute consideration?
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Donative promises & Nominal Promises (Sham promise)
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What is Duress?
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1) Improper Threat
2) No reasonble alternative |
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What is unconscionability?
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1)Absence of meaningful choice
2)Contract terms unreasonbly unfavorable to one party 3)Look at the circumstances existing when the contract was made. |
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When examining unconscionability what what circumstances do you want to examine that existed when the contrac was made?
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1) Bargaining Power
2) Manner in which contract was entered 3) Business practices/standards |
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What are the three types of reliance damages?
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1) Out of pocket costs
2)Opportunity costs 3) Expectation Measure |
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What is mutuality?
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Both parties must be bound, or neither is bound
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What is an illusory promise?
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With regards to mutuality. A promise where one party does not shrink their realm of choice. Must be bilateral contract
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What is a bilateral vs. unilateral promise?
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Bilateral- Promise for promise
Unilateral- Promise for performance |
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What common types of contract raise mutuality concerns?
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Contracts with:
Personal Satisfaction Clauses Reasonable Satisfaction clauses |
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What is the traditional view on preexisting duty and modifications?
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Modification must have new consideration.
EXCEPTION: Completed transactions & Duress |
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What is the modern/restatement view on preexisting duty and modifications?
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Must be fair and equitable/unanticipated or reliance to extent justice requires
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The exception to modification rule is waivers. What is the elements of waivers?
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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 |
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What is the Foakes v. Beer rule?
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Partial payment of an undisputed amount does not discharge a debt.
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