Ch 12: Consideration Flashcards
Legal detriment
Doing an act one is not legally obligated to do, or, not doing an act one has a legal right to do.
Legal Benefit
Obtaining something to which one had no legal right.
Promisor
Person making a promise.
Promisee
Person to whom a promise is made.
Illusory Promise
A statement that is in the form of a promise but imposes no obligation upon the maker of the statement
Output Contract
A seller’s agreement to sell her entire production to a particular purchaser
Requirements Contract
A purchaser’s agreement to buy from a particular seller all the materials of a particular kind he needs
Exclusive dealing agreement
Sole right to sell goods in a defined market.
Preexisting contractual duty
A legal obligation that a party is already bound to perform under a contract
Liquidated debt
An obligation the existence and amount of which is undisputed.
Unliquidated debt
Obligation that is uncertain or contested in amount.
Adequacy
Not required where the parties have freely agreed to the exchange
Conditional Promise
A contract in which the obligations are contingent upon the occurrence of a stated event
Preexisting Public Obligations
Public duties such as those imposed by tort or criminal law are neither a legal detriment nor a legal benefit
Modification of a Preexisting Contract
Under the common law, a modification of a preexisting contract must be supported by mutual consideration; under the Code, a contract can be modified without new consideration
