Chap 11 Flashcards
What is legal value?
Support for a contract when either the promisee suffers a legal detriment or the promisor receives a legal benefit.
What is consideration?
Something of legal value given in exchange for a promise.
What is bargained-for exchange?
Exchange that parties engage in that leads to an enforceable contract.
What is a gift promise? (gratuitous promise)
A promise that is unenforceable because it lacks consideration.
What is an illegal consideration?
A promise to refrain from doing an illegal act. Such a promise will not support a contract.
What is an illusory promise (Illusory contract)?
A contract into which both parties enter but in which one or both of the parties can choose not to perform their contractual obligations. Thus, the contract lacks consideration.
What is a preexisting duty?
Something a person is already under an obligation to do. A promise lacks consideration if a person promises to perform a preexisting duty.
What is a past consideration?
A prior act or performance. Past consideration (e.g. prior acts) will not support a new contract. New consideration must be given.
What is output contract?
A contract in which a seller agrees to sell all of its production to a single buyer.
What is a requirements contract?
A contract in which a buyer agrees to purchase all of its requirements for an item from one seller.
What is a best-efforts contract?
A contract which contains a clause that requires one or both of the parties to use their best efforts to achieve the objective of the contract.
What is an accord?
An agreement whereby the parties agree to accept something different in satisfaction of the original contract.
What is satisfaction?
The performance of an accord.
What is promissory estoppel (detrimental reliance)?
An equitable doctrine that prevents the withdrawal of a promise by a promisor if it will adversely affect a promisee who has adjusted his or her position in justifiable reliance on the promise.
