Ch 13 Consideration

Question 1

Causa

Answer 1

Reason for making the promise that was also deemed a sufficient reason for enforcing it

Question 2

Consideration

Answer 2

Value given in return for a promise or perf

Question 3

3 elements of consideration

Answer 3

Legally sufficient value, bargained for exchange, adequacy of consideration

Question 4

Legally sufficient value def + 3 types

Answer 4

= something of value in the eyes of the law
1. Promise to do something that 1 had no prior legal duty to do
Perf of act that 1 - otherwise X obligated to take
Forebearance

Question 5

Forebearance

Answer 5

Refraining f a action that 1 has legal right to undertake

Question 6

Bargained for exchange def

Answer 6

Item of value must be given/promised by promissory in return for the promises promise, perf, or promise of perf
Distinguished from gifts

Question 7

Hamer v Sidway

Answer 7

Promise to pay if nephew stopped drinking. Valid consideration? Yes, b/c restricted his legal right to drink

Question 8

Cincinnati Red, LLC v Testa

Answer 8

Red sells gifts at games. Was there any consideration by fans to get the gifts when going to these games?

Question 9

Adequacy of consideration def

Answer 9

Lacking when there may be fraud, duress, or undue influence

Question 10

3 types of agreements that lack consideration

Answer 10

Preexisting duty, past consideration, illusory promise

Question 11

Illusory promises + 2 types

Answer 11

If one party’s terms express uncertainty o perf
Option to cancel clauses - can cancel before perf begins
Output contracts - b+ s agree to buy all needed or all produced

Question 12

Accord and satisfaction

Answer 12

Debtor offers to pay, creditor accepts lesser amount than creditor originally claimed was owed

Question 13

Accord

Answer 13

Agreement

Question 14

Satisfaction

Answer 14

Perf that takes place after accord is executed

Question 15

Liquidated debts

Answer 15

One whose amount has been ascertained, fixed, agreed on, settles, / exactly determined so accord and satisfaction X take place

Question 16

3 ways to settle claims

Answer 16

Accord and satisfaction
Release
Covenant not to sue

Question 17

(contract) Release

Answer 17

Contract in which 1 party forfeits right to pursue legal claim v other barring further recovery beyond terms states in release

Question 18

Covenant not to sue

Answer 18

Legal action based on a valid claim, X always bar further recovery

Question 19

Already, LLC v Nike, Inc.

Question 20

Exceptions to the consideration rq (3)

Answer 20

Promissory estoppel
Promises to pay debts barred by a statute of limitations
Charitable subscriptions

Question 21

Promissory estoppel def

Answer 21

Detrimental reliance; * who has reasonable and substantially relied on promise o another may be able to obtain som measure of recovery

Question 22

Why enforce promissory estoppel?

Answer 22

Avoid injustice

Question 23

Requirements for promissory estoppel (4)

Answer 23

Clear and definite promise, * expected other to rely on promise
EE reasonably relied I oirnuse by acting/refraining from act
EEs reliance - definite and result than substantial detriment

Question 24

Charitable subscriptions def

Answer 24

Promise to make a donation to a reli, edu, or charitable institution