Business Law- Contracts: Consideration

Front 1

Accord and Satisfaction

Back 1

An agreement for payment (or other performance) between two parties, one of whom has a right of action against the other. After the payment has been accepted or other performance has been made, the accord and satisfaction is complete and the obligation is discharged.

Front 2

Consideration

Back 2

Generally, the value given in return for a promise or a performance. The consideration, which must be present to make the contract legally binding, must be something of legally sufficient value and bargained for.

Front 3

Covenant not to sue

Back 3

An agreement to substitute a contractual obligation for some other type of legal action based on a valid claim.

Front 4

Forbearance

Back 4

The act of refraining from an action that one has a legal right to undertake.

Front 5

Past Consideration

Back 5

An act done before the contract is made, which ordinarily, by itself, cannot be consideration for a later promise to pay for the act.

Front 6

Release

Back 6

A contract in which one party forfeits the right to pursue a legal claim against the other party.

Front 7

Rescission

Back 7

(pronounced reh-sih-zhen) A remedy whereby a contract is canceled and the parties are returned to the positions they occupied before the contract was made; may be effected through the mutual consent of the parties, by their conduct, or by court decree.