Chapter 13 Flashcards
accord and satisfaction
An agreement for payment (or other performance) between two parties, one of whom has a right of action against the other. After the payment has been accepted or other performance has been made, the “accord and satisfaction” is complete and the obligation is discharged.
consideration
Generally, the value given in return for a promise or a performance. The consideration, which must be present to make the contract legally binding, must be something of legally sufficient value and bargained for.
covenant not to sue
An agreement to substitute a contractual obligation for some other type of legal action based on a valid claim.
estopped
Barred, impeded, or precluded
forbearance
The act of refraining from exercising a legal right. An agreement between the lender and the borrower in which the lender agrees to temporarily cease requiring mortgage payments, to delay foreclosure, or to accept smaller payments than previously scheduled.
liquidated debt
A debt that is due and certain in amount.
past consideration
Something given or some act done in the past, which cannot ordinarily be consideration for a later bargain.
promissory estoppel
A doctrine that applies when a promisor makes a clear and definite promise on which the promisee justifiably relies; such a promise is binding if justice will be better served by the enforcement of the promise. see also Estoppel
release
A contract in which one party forfeits the right to pursue a legal claim against the other party.
rescission
A remedy whereby a contract is canceled and the parties are returned to the positions they occupied before the contract was made; may be effected through the mutual consent of the parties, by their conduct, or by court decree.
unliquidated debt
A debt that is uncertain in amount.
