Chapter 10 exam 3

Question 1

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

Answer 1

consideration

Question 2

consideration is broken down into two parts:

Answer 2

1. something of legally sufficient value must be given in exchange for the promise
2. there must be a bargained-for exchange

Question 3

consideration must be something of value in the eyes of the law

Answer 3

this is to be legally sufficient

Question 4

to be something of legally sufficient value

Answer 4

1. promise to do something that one has no prior legal duty to do
2. performance of an action that one is otherwise not obligated to undertake
3. refraining from an action that one has a legal right to undertake

Question 5

“how much” consideration is given, the fairness of the bargain

Answer 5

adequacy of consideration

Question 6

where a contract is canceled and the parties are returned to the position they occupied before the contract was made

Answer 6

Rescission

Question 7

promises made in return for actions or events that have already taken place are unenforceable

Answer 7

past consideration

Question 8

terms of contract express such uncertainity of performance that the promisor has not definitely promised to do anything, the promise is said to be

Answer 8

illlusory

Question 9

a debitor offers to pay, creditor accepts, a lessor amount than the creditor originally claimed was owed

Answer 9

accord and satisfaction

Question 10

the agreement under which one of the parties promises to give or perform and the other to accept

Answer 10

accord

Question 11

performance (usually payment) which takes place after the accord is executed

Answer 11

satisfaction

Question 12

if debt is liquidated then accord and satisfaction….

Answer 12

cannot take place

Question 13

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

Answer 13

liquidated debt

Question 14

the amount of the debt is not settled, agreed on, ascertained or determined

Answer 14

unliqudated debt

Question 15

where one party forfeits the right to pursue a legal claim against another party/ “i am given up my right to pursue an action”

Answer 15

release

Question 16

releases will generally be binding if they are:

Answer 16

1.given in good faith
2. stated in signed writing
3. accompanied by consideration

Question 17

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

Answer 17

covenant not to sue

Question 18

a person who has reasonably and substantially relied on the promise of another can obtain some measure or recovery

Answer 18

promissory estoppel

Question 19

barred or prevented

Answer 19

estopped

Question 20

legal ability to enter into a contractual relationship

Answer 20

contractual capacity

Question 21

in regards to minors, the act of being freed from parental control

Answer 21

emancipation

Question 22

legal avoidance, or setting aside, of a contractual obligation is (minors)

Answer 22

disaffirmance

Question 23

to disaffirm a minor must express, through words or conduct, his or her intent not to be

Answer 23

bound to the contract

Question 24

include whatever is reasonably needed to maintain the minors standard of living

Answer 24

necessaries

Question 25

acceptance or confirmation of an act or agreement that gives legal force to an obligation that previously was not enforceable

Answer 25

ratification

Question 26

occurs when the individual, on reaching the age of majority, states orally or in writing that they intends to be bound by the contrat

Answer 26

express ratification

Question 27

takes place when the minor, on reaching the age of majority, behaves in a manner inconsistent with disaffirmance

Answer 27

implied ratification

Question 28

contract entered into by an intoxicated person can either be ___ or ___

Answer 28

voidable or vlaid (enforceable)

Question 29

contracts made by mentally incompetent persons can be ____,___or ____

Answer 29

void, voiable, or valid

Question 30

for a contract to be valid and enforceable, it must be formed for a

Answer 30

legal purpose

Question 31

charging an illegal rate of interest

Answer 31

usury

Question 32

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 specified geographical area

Answer 32

covenant not to compete

Question 33

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

Answer 33

reformation

Question 34

which the terms of the agreement are so unscrupulous or grossly unfair as to be " void of conscience"

Answer 34

unconscionable contract or clause

Question 35

a contract can be unconscionable on either ____ or _____

Answer 35

procedural, substantive

Question 36

often involves inconscpicuous print, unintelliigible language or ones party's lack of opportunity to read the contract or ask questions about its meaning

Answer 36

procedural unconscionability

Question 37

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

Answer 37

adhesion contract

Question 38

occurs when contracts or portions of contracts are oppressive or overly harsh

Answer 38

substantive unconscionability

Question 39

release a party from liability in the event of monetary or physical injury no matter who is at fault

Answer 39

exculpatory clauses

Question 40

state laws that regulate the offering and sale of securities for the protection of the public

Answer 40

blue sky laws

Question 41

An agreement between the lender and the borrower. It involves the lender agreeing to temporarily stop requiring mortgage payments, delay foreclosure proceedings, or accept smaller payments than originally scheduled. This is often done to provide relief to borrowers facing financial hardship, allowing them some breathing room to manage their finances during difficult times.

Answer 41

Forbearance

Question 42

discretionary (illusory promise) means "i hope I could give u a big bonus" but this is not

Answer 42

promised

Question 43

for the doctrine of promissory estoppel to be applied, whatre 5 requirements:

Answer 43

1. there must be a clear and definite promise 2. promisor reasonably relied on the promise by acting or refraining from some act 3. the promisor should have expected that the promise would rely on the promise 4. the promisee's reliance was definite and resulted in substantial detriment 5.Enforcement of the promise is necessary to avoid injustice

Question 44

some people who are incompetent due to ae or illness gave lucid intervals- temporary periods of sufficient intelligence, judgment, and will

Answer 44

so a contract will still be valid

Question 45

do a deal with an unlicensed person, do I have to pay them?

Answer 45

typically the contract involving an unlicensed practitioner generally is illegal and unenforceable