Lw121 Ch 10-13

Front 1

what is consideration?

Back 1

something of legal value given in exchange for a promise.

Front 2

what are the requirements of consideration?

Back 2

1) Legal Value
2)bargained for exchange

Front 3

what is a illusory promise?

Back 3

when one or both parties choose not to perform their contractual obligation, the contract lacks consideration and is not enforceable.

Front 4

pre-existing duty

Back 4

lacks consideration if a person promises to perform an act or do something he r she is already under obligation to do.

Front 5

accord

Back 5

the compromise agreement. if the accord is performed it is called satisfaction, if not the other party can sue to enforce either the accord or the original contract

Front 6

promissory estoppel

Back 6

provides remedy to a personw ho has relied on another persons promise, but that person withrdraws their promise and isnt subject to a breach of contract action because agreement or consideration is lacking. person who has detrimentally relied on the promise for performance may sue the promisor for performance.

Front 7

Requirements of Promissory Estoppel

Back 7

1)promisor made a promise
2)promisor should have reasonably expected to induce the promise to reply on the promise.
3)the promisee relied ont he primse and engaged in an action or forbearance of a right of a definite substantial nature.
3) injustice would be caused if the prromise were not enforced.

Front 8

Infancy Doctrine

Back 8

gives minors the right to disaffirm most contract they have entered into with adults. Minor has option of choosing whether to enforce a contract Adult party is bound.

Front 9

Competent Partys duty of restitution

Back 9

minor must be restored to same position they were in before entering into contract, done b returning the consideration to the minor, if lost value then competent party must pay minor cash equivalent.

Front 10

Minors Duty of Restoration

Back 10

minor is obligated to return the goods or property he has recieved from the adult int he condition it is in at the time of disaffirmancne, even if it has been consumed or lost.

Front 11

Minors duty of restitution

Back 11

minor must put the adult in status quo upon disaffirmance of the contract if the minors intention or grossly negligent conduct caused the loss of value to the adults party.

Front 12

misinterpretation of age

Back 12

if minor lies about age to adult, they still have right to disaffirm. most states revised rule that minors must place the adult in status quo if they dissafirm, then ow the duties of rstoration and restitution when disaffirming it.

Front 13

ratification

Back 13

if a minor does not disaffirm a contract during period of minory or within a reasonable time of reaching majority, contract is ratified.

Front 14

unconscionable contracts

Back 14

contract that courts refuse to enfore all or part of because it is so oppressive or unfair as to be unjust.

Front 15

Requirements of unconscionable contracts

Back 15

1)parties possessed severly unequal bargaining power.
2)dominant party used its enequal bargaining power to obtain oppressive or unfair terms.
3)adhering party had no reasonable alternative.

Front 16

unilateral mistakte

Back 16

only one party is mistaken about a material fact regarding the subject matter of a contract.

Front 17

mutual mistake of fact

Back 17

a mistake made by both parties concerning a material fact that is important to the subject matter of the contract. able to rescind

Front 18

mutual mistake of value

Back 18

mistake that occurs if both parties know the object of the contract but are mistaken to its value. remains enforceable.

Front 19

fraud

Back 19

when on person consciously decides to induce another preson to rely and act on a misinterpration.

Front 20

Elements of Fraud

Back 20

1)wrongdoer made a false representation of material fact.
2)wrongdoer intented to decieve innocent party.
3)innocent party justifiabl relied on the misinterpretation
4)innocent party was injured

Front 21

Fraud in the inception

Back 21

occurs if a person is decieved as to the nature of their act and does not know what they are signing.

Front 22

fraud in the inducement

Back 22

the innocent party knows what he or she is signing but has been fraudulently induced to enter into the contract.

Front 23

fraud by concealment

Back 23

occurs when one party takes specific action to conceal a material fact from another party.

Front 24

undue influence

Back 24

occurs when on person takes advantage of another persons mental, emotional or physical weakness and unduly persuades that person to enter into a contract.

Front 25

duress

Back 25

occurs when on party threatens to do some wrongful act unless the other party enters into a contract

Front 26

economic duress

Back 26

when one party to a contract refuses to perform his or her contractual duties unless the other party pays an increased price, or enters into a second contract with the threatening party.