3 - Ch 14

Question 1

consideration

Answer 1

the promise or performance that the promisor demands as the price of the promise

Question 2

forbearance

Answer 2

refraining from doing an act

Question 3

illusory promise

Answer 3

a promise that in fact does not impose any obligation on the promisor

Question 4

cancellation provision

Answer 4

a crossing out of a part of an instrument or a destruction of all legal effect of the instrument, whether by act of party, upon breach by the other party, or pursuant to agreement or decree of court

Question 5

composition or creditors

Answer 5

an agreement among creditors that each shall accept a part payment as full payment in consideration of the other creditors doing the same

Question 6

past consideration

Answer 6

something that had been performed in the past and which, therefore, cannot be consideration for a promise made in the present

Question 7

promissory estoppel

Answer 7

the doctrine that a promise will be enforced although it is not supported by consideration when the promisor should have reasonably expected that the promise would induce action or forbearance of a definite and substantial character on the part of the promised and injustice can be avoided only by enforcement of the promise