Chapter 11

Question 1

Consideration

Answer 1

Something of legal value given in exchange for a promise
Necessary for the existence of a contract

Question 2

Legal value

Answer 2

Promisee suffers a legal detriment
Promisor receives a legal benefit

Question 3

Bargained-for exchange

Answer 3

Process of bargaining or inducement that leads to an enforceable contract

Question 4

Gratuitous promises

Answer 4

Unenforceable due to lack of consideration

Question 5

Illegal consideration

Answer 5

A promise to refrain from doing an illegal act
Ex: Give me money and i promise i wont burn your store down

Question 6

Illusory promise

Answer 6

A contract that both parties enter, but one or both of the parties can choose not to perform their contractual obligations

Question 7

Preexisting duty

Answer 7

A promise to do something the party is already under an obligation to do (cannot be used as consideration)

Question 8

Past consideration

Answer 8

A prior act or performance that does not support a new contract

Question 9

Output contract

Answer 9

Contract in which seller agrees to sell all of its production to a single buyer

Question 10

Requirements contract

Answer 10

Contract in which a buyer agrees to purchase all of its requirements for an item from one seller

Question 11

Best-efforts contract

Answer 11

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

Question 12

Accord

Answer 12

Agreement whereby the parties agree to accept something different in satisfaction of the original contract

Question 13

Satisfaction

Answer 13

Performance of an accord

Question 14

Promissory Estoppel

Answer 14

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
Ex: general contractor with many sub contractors