Chapter 10 & 11 Terms

Question 0

Adhesion contracts

Answer 0

A standard-form contract in which the stronger party dictates the terms

Question 1

Accord and satisfaction

Answer 1

A common means of settling a disputed claim, whereby a debtor offers to pay a lesser amount than the creditor purports to be owed.

Question 2

Consideration

Answer 2

The value given in return for a promise or performance in a contractual agreement

Question 3

Contractual capacity

Answer 3

The capacity required by the law for a party who enters into a contract to be bound by that contract

Question 4

Covenant not to compete

Answer 4

A contractual promise of one party to refrain from conducting business similar to that of another party for a certain period of time and within a specific geographical area

Question 5

Covenant not to sue

Answer 5

An agreement to substitute a contractual obligation for some other legal type of action based on a valid claim

Question 6

Disaffirmance

Answer 6

The legal avoidance or setting aside, of a contractual obligation

Question 7

Emancipation

Answer 7

In regard to minor, the act of being freed from parental control

Question 8

Exculpatory Clause

Answer 8

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

Question 9

Forbearance

Answer 9

The act of refraining from an action that one has a legal right to undertake. In mortgages, an agreement between lender and the borrower in which the lender agrees to temporarily cease requiring mortgage payments, to delay foreclosure, or to accept smaller payments than previously scheduled

Question 10

Liquidated debt

Answer 10

A debt whose amount has been ascertained, fixed, agreed on, settled or exactly determined

Question 11

Necessaries

Answer 11

Necessities required for life such as food, shelter clothing, and medical attention

Question 12

Past consideration

Answer 12

An act that takes place before the contract is made and that ordinarily, by itself, cannot be consideration for a later promise to pay for the act

Question 13

Promissory Estoppel

Answer 13

A doctrine that can be used to enforce a promise when the promisee has justifiably relied on it and when justice will be better served by enforcing the promise

Question 14

Ratification

Answer 14

A party’s act of accepting or giving legal force to a contract or other obligation entered into by another that previously was not enforceable

Question 15

Reformation

Answer 15

A court-ordered correction of a written contract so that it reflects the true intentions of the parties

Question 16

Release

Answer 16

An agreement in which one party gives up the right to pursue a legal claim against another party

Question 17

Rescission

Answer 17

A remedy whereby a contract is canceled and the parties are returned to the positions they occupied before the contract was made

Question 18

Unconscionable contract or clause

Answer 18

A contract or clause that is void on the basis of public policy because one party was forces to accept terms that are unfairly burdensome and that unfairly benefit the stronger party

Question 19

Usury

Answer 19

Changing an illegal rate of interest