Chapter 13 Flashcards
Consideration is the value given to a promisor in return for…
A promise or a performance
Consideration must be…
- Something of legally sufficient value
- Bargained for exchange (price of promise)
Something of value can be…
- A general promise to do something
- Unobligated performance of an action
- Forbearance
Forbearance
An act of retaining from exercising a legal right
Adequacy of consideration asks…
How equal/fair is the consideration?
General Rule of Consideration
Consideration doesn’t depend on comparing the value of things exchanged
Courts only get involved in consideration if…
They suspect one party is either committing fraud or there’s a lack of a bargained for exchange
Is a promise to perform a legal duty sufficient consideration?
No. Legal duty = you have to do it regardless bc u have a legal obligation to do so
An exception for legal duty can be allowed if…
There’s unforeseen difficulties around the time the contract was formed
Past consideration
Something given/done in the past
Can past consideration count for a later bargain?
No
Past actions are unenforceable because…
The element of bargained for exchange is missing
Illusory promises
Uncertain promises
Illusory promises are unenforceable because…
They don’t bind the promisor
Accord and Satisfaction is an agreement between 2 parties where…
1 party pays less in full satisfaction, aiming to pay the rest later
Liquidated debt
A debt is due and certain in amount
Can accord and satisfaction take place in liquidated debt?
No
Unliquidated debt
Uncertain debt
Can accord and satisfaction take place in unliquidated debt?
Yes, because valid consideration is present
Release
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
A release contract can be binding if…
- The agreement is made in good faith
- It’s in signed writing
- It’s accompanied by consideration
Do promises equal contracts?
No
Doctrine of Promissory Estoppel applies when…
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
A doctrine of promissory estoppel is binding if…
Justice will be better served by enforcement of the promise
