Chapter 13 Consideration

Question 1

Forebearance

Answer 1

The refraining from an action that one has a legal right to undertake

Question 2

Adequacy of consideration

Answer 2

How much consideration is given and whether a fair bargain was reached

Question 3

Court looking into adequacy of consideration?

Answer 3

Usually don’t, but will look when fraud, undue influence, duress, or the lack of a bargained-for exchange may be involved

Question 4

Consideration

Answer 4

A promise, performance, or forbearance bargained by a promisor in exchange for their promise
- What a party gets out of the deal

Question 5

When preexisting duty can be modified?

Answer 5

Unforeseen difficulties
- “The modification is fair and equitable in view of circumstances not anticipated by the parties when the contract was made”
Considering rescission then forming a new contract

Question 6

Rescission

Answer 6

The unmaking of a contract so as to return the parties to the positions they occupied before the contract was made

Question 7

Past consideration

Answer 7

You can bargain for something to take place now or in the future but not for something that has already taken place
- 不吃回头草

Question 8

Illusory promises

Answer 8

When the terms of the contract express such uncertainty of performance that the promisor has not definitely promised to do anything
- 虚晃一枪 画大饼

Question 9

Bargained-for exchange

Answer 9

The item of value must be given or promised by the promisor (offeror) in return for the promisee’s promise, performance, or promise of performance
- Mutual inducement

Question 10

Option-to-cancel clauses

Answer 10

When the promisor can cancel the contract before performance begins, the contract is illusory

Question 11

Requirement contract

Answer 11

Agreement that the buyer will purchase from the seller any goods that the buyer needs

Question 12

Accord and satisfaction

Answer 12

The agreement (accord) between two contracting parties to accept alternate performance to discharge a pre-existing duty between them and the subsequent performance (satisfaction) of that agreement

Question 13

Output contract

Answer 13

Agreement that the buyer will purchase all of what the seller produces

Question 14

Liquidated debt

Answer 14

When the debt amount has been ascertained, fixed, agreed on, settled, or exactly determined

Question 15

Release

Answer 15

A contract in which one party forfeits the right to pursue a legal claim against the other party

Question 16

Covenant not to sue

Answer 16

Similar to release but doesn’t bar further recovery

Question 17

Doctrine of promissory estoppel

Answer 17

A promise may be enforced even though it is not supported by consideration
- Lack of consideration cannot be used by the promisor as a defense