Chapter 11 Flashcards
The value given in return for a promise or performance in a contractual agreement
Consideration
What are the 3 requirements for consideration?
A promise to do something that one has no prior legal duty to do
Performance of an action that one is otherwise not obligated to undertake
Refraining from an action that one has a legal right to undertake
The act of refraining from an action that one has a legal right to undertake
Forbearance
A promise to do what one already has a legal duty to do does not constitute legally sufficient consideration
Preexisting Duty Rule
A remedy whereby a contract is canceled and the parties are returned to the positions they occupied before the contract was made
Rescission
A common means of settling a disputed claim, whereby a debtor offers to pay a lesser amount than the creditor purports to be owed
Accord and Satisfaction
A debt whose amount has be ascertained, fixed, agreed on, settled, or exactly determined
Liquidated debt
The amount of the debt is not settled, fixed, agreed on, ascertained, or determined, and reasonable persons may differ over the amount owed
Unliquidated Debts
An agreement in which one party gives up the right to pursue a legal claim against another party
Release
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
Promissory Estoppel
The capacity required by the law for a party who enters into a contract to be bound by that contract
Contractual Capacity
In regard to minors, the act of being freed from parental control
Emancipation
The legal avoidance, or setting aside, of a contractual obligation
Disaffirmance
Necessities required for life, such as food, shelter, clothing, and medical attention
Necessaries
The acceptance or confirmation of an act or agreement that gives legal force to an obligation that previously was not enforceable
Ratification
