Chapter 11 Flashcards
Something of legal value given in exchange for a promise.
consideration
Support for a contract when either (1) the promisee suffers a legal detriment or (2) the promisor receives a legal benefit
legal value
Exchange that parties engage in that leads to an enforceable contract
bargained-for exchange
A promise that is unenforceable because it lacks consideration
gift promise (gratuitous promise)
A contract in which a seller agrees to sell all of its production to a single buyer.
output contract
A contract in which a buyer agrees to purchase all of its requirements for an item from one seller.
requirements contract
A contract that contains a clause that requires one or both of the parties to use their best efforts to achieve the objective of the contract
best-efforts contract
An agreement whereby the parties agree to accept something different in satisfaction of the original contract
accord
performance of an accord
satisfaction
settlement of a contract dispute
accord and satisfaction (compromise)
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.
promissory estoppel (detrimental reliance)
For the doctrine of promissory estoppel to apply, the following elements must be shown
1)The promisor made a promise.
2)The promisor should have reasonably expected to induce the promisee to rely on the promise.
3)The promisee actually relied on the promise and engaged in an action or forbearance of a right of a definite and substantial nature.
4)Injustice would be caused if the promise were not enforced
A doctrine that prevents a promisor from revoking his or her promise even though there is lack of consideration.
estop
