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7 Cards in this Set
- Front
- Back
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L.11.1
In what situation A debt is called a liquidated debt? |
• if there is no dispute as to how much is owed. The debtor MUST pay the exact amount of the debt unless the parties agree to modify the contract. No dispute in changing
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L.11.2
2 ways to MODIFIY A CONTRACT WHERE THERE IS A LIQUIDATED DEBT |
• A signed writing which modifies the contract,
OR • The parties each give additional consideration Wasn’t obligated to give in an orginal contract No need to match up with the value in a discussion |
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L.11.3
In what situation A debt is called an unliquidated debt? |
No agreement in a change
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L.11.4
What must be existing in the case of unliquidated debt? |
If there is a genuine dispute as to how much is owed the debt may be satisfied by an offer of accord and satisfaction. To have a valid offer of accord and satisfaction each of the following elements MUST be present:
OFFER OF ACCORD • A valid dispute as to what is owed, and • Tendering payment of a lesser amount, and • A statement by the debtor that this lesser amount is in full payment or “full satisfaction” of the amount owed, and SATISFACTION • The creditor accepts the payment or deposits the check without “reserving his/her rights”. ALL THE ABOVE ELEMENTS MUST BE PRESENT. IF ANY ELEMENTS ARE MISSING THE DEBT WILL NOT BE SATISFIED. • To reserve his/her rights the creditor must write on the check, before depositing it, the words “under protest” or “without prejudice” or something similar. UCC 1-207 |
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What is NOT considered as CONSIDERATION?
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- Promissing to do something that you are already obligated to do is not consideration
- The issue of past consideration: Consideration given when there was no “K” to be enforceable. The promise of reward or gift must be stated in a signed writing that states what the past consideration was. |
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L.11.6
What is CONSIDERATION? |
- Each party to a contract must give consideration if the K is to be enforceable. Consideration is something that has value.
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L.11.8
What can be CONSIDERATION? |
- Money
- Services - Giving up a right - Promising to give up - Things |
