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18 Cards in this Set
- Front
- Back
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Consideration |
- something of legal value given in exchange for a promise |
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Requirements of Consideration |
1. legal value 2. bargained-for exchange |
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Legal Value |
- support for a contract when either (1) the promise suffers a legal detriment or (2) the promisor receives a legal benefit |
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Bargained-for Exchange |
- exchange that parties engage in that leads to an enforceable contract |
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Case Example of Consideration
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In the Matter of Wirth |
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Gift Promise |
- a promise that is unenforceable because it lacks consideration - ex. pg. 207 |
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Case Example of Gift Promise |
Cooper v. Smith |
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Illegal Consideration |
- a promise to refrain from doing an illegal act - ex. "I will burn your business down unless you agree to pay me $10,000" |
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Illusory Promise |
- a contract which provides that one of the parties has to perform only if he or she chooses to do so |
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Preexisting Duty |
- promise based on the preexisting duty of the promisor to perform - something a person is already under an obligation to do |
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Past Consideration |
- a prior act or performance - promise based on the past performance of the promisee |
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Output Contract |
- a contract in which a seller agrees to sell all of its production to a single buyer |
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Requirements Contract |
- a contract in which a buyer agrees to purchase all of its requirements for an item from one seller |
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Best-efforts Contract |
- a contract which contains a clause that requires one or both of the parties to use their best efforts to achieve the objective of the contract |
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Accord |
- an agreement whereby the parties agree to accept something different in satisfaction of the original contract |
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Satisfaction |
- the performance of an accord |
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Promissory Estoppel/Detrimental Reliance |
- an equitable doctrine that prevents the withdrawal of a promise by a promisor if it will adversely affect a promisee who has adjusted his or her position in justifiable reliance on the promise |
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What elements must be shown in order for a promissory estoppel to apply? |
1. the promisor made a promise 2. the promisor should have reasonably expected to induce the promisee to reply on the promise 3. the promisee actually relied on the promise and engaged in an action or forbearance of a right of a definite and substantial nature 4. injustice would be caused if the promise were not enforced |
