Ch. 4: Consideration Flashcards
accord and satisfaction
a special agreement in which the parties to a disputed contract agree to new terms in exchange for forbearing to sue under the original contract
caveat emptor
latin phrase meaning “let the buyer beware”
caveat venditor
latin phrase meaning “let the seller beware”
charitable subscription
pledge or promise to donate money to a charity; given the enforceability of a contract under law
conditional promise
a promise dependent on the happening or nonhappening of a future event
consideration
a benefit conferred or a detriment incurred; a basic requirement of every valid contract
co-signer
person who agrees to be equally liable with a promisor under a contract
formal contract
written contract under seal specifically enforced by statute
guarantee
an enforceable written promise to answer for the debts of another
guarantor
person who agrees to be responsible to answer for the debts of another should the debtor default
mutuality of consideration
the bargain element of a contract that requires each side to give and receive something of legal value
nominal consideration
consideration of insufficient legal value to support a contract
preexisting duty rule
promises to do what one is already bound to do is not consideration
promissory estoppel
doctrine in which promises not supported by consideration are given enforceability if the promisee had detrimentally relied on the promises
quid pro quo
latin phrase meaning “this for that”; the mutuality of consideration
