CH 11 - Consideration, Capacity and Legality

Question 0

FOREBEARANCE

Answer 0

Not doing something you have the legal right to do

Question 1

CONSIDERATION

Answer 1

Value given in return for a promise or performance in a contractual agreement. Exchange of mutual sacrifice.

Question 2

PAST CONSIDERATION (lacks consideration)

Answer 2

Doing something now you DIDN’T agree to do before based on some past event

Question 3

PRE EXISTING DUTY (lacks consideration)

Answer 3

Doing something you already have to do

Question 4

NY RULES

Answer 4

Promise enforceable if SWLC form

• S = Signed
• W = Written
• L = Legal
• C = Clear

Question 5

RESCISSION

Answer 5

Remedy whereby a contract is canceled and the parties are returned to their positions before the contract was made.

Question 6

ACCORD + SATISFACTION

Answer 6

Debtor offers to pay a lesser amount than the owed and the creditor accepts.
Accord = Contract
Satisfaction = Performance

Question 7

LIQUIDATED DEBT (UNDISPUTED)

Answer 7

Amount has been ascertained, fixed, agreed on, settled, or exactly determined.

Question 8

UNLIQUIDATED DEBT (DISPUTED)

Answer 8

Nothing settled or fixed. Reasonable persons may differ over the amount owed.

Question 9

RELEASE

Answer 9

One party gives up the right to pursue a legal claim against another party.
Freed from legal obligations.

Question 10

COVENANT NOT TO SUE

Answer 10

Promise not to sue.

Question 11

CAPACITY

Answer 11

Ability to enter a valid binding agreement

Question 12

EMANCIPATION

Answer 12

The act of being freed from parental control

Question 13

DISAFFIRMANCE (GET OUT)

Answer 13

Legal avoidance, or setting aside, of a contractual obligation

Question 14

RATIFICATION (STAY IN))

Answer 14

Acceptance/ confirmation of an act or agreement that gives legal force to an obligation that previously was not enforceable

Question 15

NECESSARIES/ NECESSITIES

Answer 15

Required for life, such as food, shelter, clothing, and medical attention.

Question 16

USURY

Answer 16

Charging an illegal rate of interest

Question 17

LICENSE

Answer 17

Legal permission

Question 18

EXCULPATORY CLAUSE

Answer 18

A clause that releases a contractual party from liability in the event of monetary or physical injury, no matter who is at fault.

Question 19

PROCEDURAL UNCONSCIONABILITY

Answer 19

Men vs Women, I want W to win, so I give them more opportunities to answer correctly. Unfair procedure.

Question 40

SUBSTANTIVE UNCONSCIONABILITY

Answer 40

Give W different type of words than M in the spelling contest.