• Shuffle
    Toggle On
    Toggle Off
  • Alphabetize
    Toggle On
    Toggle Off
  • Front First
    Toggle On
    Toggle Off
  • Both Sides
    Toggle On
    Toggle Off
  • Read
    Toggle On
    Toggle Off
Reading...
Front

Card Range To Study

through

image

Play button

image

Play button

image

Progress

1/18

Click to flip

Use LEFT and RIGHT arrow keys to navigate between flashcards;

Use UP and DOWN arrow keys to flip the card;

H to show hint;

A reads text to speech;

18 Cards in this Set

  • Front
  • Back

Consideration

Consideration requires that there must be bargaining that leads to an exchanging between parties. "Bargaining" indicates that each side is obligating itself in some way to induce the other side to agree.

Promisor

The person making a promise.

Promisee

The person to whom the promise is made.

Adequacy of Consideration

Courts seldom inquire into the adequacy of consideration. This is often referred to as the "peppercorn rule" as long as a tiny, measurable amount of consideration is present, the consideration is considered valid.

Illusory Promise

A promise that is not enforceable because it lacks a clear consideration. Statements such as "I'll give you $100 dollars if I feel like it" is an example of an illusory promise.

Requirements contract

In a requirements contract, the buyer agrees to purchase 100% of her goods from one seller.

Output contract

In an output contract, the seller guarantees to sell 100% of its output to one buyer, and the buyer agrees to accept the entire quantity.

Past considerations

Past considerations is generally no consideration. Consideration requires the bargaining exchange between two parties, if one makes a promise based on something someone else has already done, there was really no consideration at all.

Preexisting Duty

A preexisting duty, or a promise to do something the promisor is already obligated to do, is not consideration.

Additional Work

An exception to the preexisting duty rule. If the promisor agrees to do something above and beyond what he is obligated to do, then there is consideration.

Rescinding a contract

To cancel a contract

Unforeseen Circumstances

Unforeseen Circumstances are an exception to the Preexisting Duty rule.

Liquidated Debt

A debt which there is no dispute about the amount owed

Unliquidated debt

A debt that is disputed because the parties disagree over its existence or amount.

Accord and Satisfaction

A completed agreement to settle a debt for less than the sum claimed.

"Full Payment" Notations

In most states payment by a check that has a "full payment" notation will create an accord and satisfaction unless the creditor is an organization that has notified the debtor that full payment offers must go to a certain officer.

UCC exceptions to Accord and Satisfaction

If an organization notifies a debtor that any offer to settle for less than the debt claimed must be made to a particular official, and the check is sent to anyone else in the organization, depositing the check generally does not create an accord and satisfaction.

UCC exceptions to Accord and Satisfaction - 90 days rule

If within 90 days of cashing a "full payment" check, the creditor offers repayment of the same amount to the debtor, there is no accord and satisfaction.