CH 11 - Consideration, Capacity and Legality Flashcards
FOREBEARANCE
Not doing something you have the legal right to do
CONSIDERATION
Value given in return for a promise or performance in a contractual agreement. Exchange of mutual sacrifice.
PAST CONSIDERATION (lacks consideration)
Doing something now you DIDN’T agree to do before based on some past event
PRE EXISTING DUTY (lacks consideration)
Doing something you already have to do
NY RULES
Promise enforceable if SWLC form
- S = Signed
- W = Written
- L = Legal
- C = Clear
RESCISSION
Remedy whereby a contract is canceled and the parties are returned to their positions before the contract was made.
ACCORD + SATISFACTION
Debtor offers to pay a lesser amount than the owed and the creditor accepts.
Accord = Contract
Satisfaction = Performance
LIQUIDATED DEBT (UNDISPUTED)
Amount has been ascertained, fixed, agreed on, settled, or exactly determined.
UNLIQUIDATED DEBT (DISPUTED)
Nothing settled or fixed. Reasonable persons may differ over the amount owed.
RELEASE
One party gives up the right to pursue a legal claim against another party.
Freed from legal obligations.
COVENANT NOT TO SUE
Promise not to sue.
CAPACITY
Ability to enter a valid binding agreement
EMANCIPATION
The act of being freed from parental control
DISAFFIRMANCE (GET OUT)
Legal avoidance, or setting aside, of a contractual obligation
RATIFICATION (STAY IN))
Acceptance/ confirmation of an act or agreement that gives legal force to an obligation that previously was not enforceable
