Chapter 13

Question 1

Consideration is the value given to a promisor in return for…

Answer 1

A promise or a performance

Question 2

Consideration must be…

Answer 2

1. Something of legally sufficient value
2. Bargained for exchange (price of promise)

Question 3

Something of value can be…

Answer 3

1. A general promise to do something
2. Unobligated performance of an action
3. Forbearance

Question 4

Forbearance

Answer 4

An act of retaining from exercising a legal right

Question 5

Adequacy of consideration asks…

Answer 5

How equal/fair is the consideration?

Question 6

General Rule of Consideration

Answer 6

Consideration doesn’t depend on comparing the value of things exchanged

Question 7

Courts only get involved in consideration if…

Answer 7

They suspect one party is either committing fraud or there’s a lack of a bargained for exchange

Question 8

Is a promise to perform a legal duty sufficient consideration?

Answer 8

No. Legal duty = you have to do it regardless bc u have a legal obligation to do so

Question 9

An exception for legal duty can be allowed if…

Answer 9

There’s unforeseen difficulties around the time the contract was formed

Question 10

Past consideration

Answer 10

Something given/done in the past

Question 11

Can past consideration count for a later bargain?

Answer 11

No

Question 12

Past actions are unenforceable because…

Answer 12

The element of bargained for exchange is missing

Question 13

Illusory promises

Answer 13

Uncertain promises

Question 14

Illusory promises are unenforceable because…

Answer 14

They don’t bind the promisor

Question 15

Accord and Satisfaction is an agreement between 2 parties where…

Answer 15

1 party pays less in full satisfaction, aiming to pay the rest later

Question 16

Liquidated debt

Answer 16

A debt is due and certain in amount

Question 17

Can accord and satisfaction take place in liquidated debt?

Answer 17

No

Question 18

Unliquidated debt

Answer 18

Uncertain debt

Question 19

Can accord and satisfaction take place in unliquidated debt?

Answer 19

Yes, because valid consideration is present

Question 20

Release

Answer 20

A contract in which 1 party forfeits the right to pursue a legal claim against the other, barring any future recovery beyond the terms stated

Question 21

A release contract can be binding if…

Answer 21

1. The agreement is made in good faith
2. It’s in signed writing
3. It’s accompanied by consideration

Question 22

Do promises equal contracts?

Answer 22

No

Question 22

Doctrine of Promissory Estoppel applies when…

Answer 22

A promisor makes a clear + definite promise on which the promisee justifibaly relies on

In other words, the promisee relied on the promise to their detriment

Question 22

A doctrine of promissory estoppel is binding if…

Answer 22

Justice will be better served by enforcement of the promise