Chapter 13 Consideration

Question 1

Somthing of legally sufficient value may consist of the fallowing

3

Answer 1

1) a promise to do somthing that one has no prior legal duty to do
2) the preformance of an action that is otherwise not obligated to undertake
3) the refraining from an action that one has the legal right to undertake

Question 2

The promise of refraining from an action that one has the legal right to undertake

Answer 2

Forbearance

Question 3

The element of bargained for exchange distinguishes what

Answer 3

Contracts from gifts

Question 4

Shockingly inadequate consideration may raise a red flag for a court to look more closely at a bargain because it may indicate …

Answer 4

Fraud, duress or undue influence

Question 5

Precasting duty

Answer 5

A promise to do somthing that one already has the legal duty to do is not consideration

Question 6

Unforeseen difficulties

Answer 6

Contract can be modified due to extraordinary difficulties that were unforeseeable

The modification must be found fair and equitable

Question 7

Past consideration

Answer 7

Promises made in return for actions or events that have already taken place are unenforceable.

Question 8

If terms of a contract express such uncertainty of preformance that the promisor has not deffinatly promised to do anything the promise is said to be

Answer 8

Illusory

Illusory promises

Question 9

Option to cancel clause

Answer 9

Crests an illusory promise if the option to cancel is valid before the preformance begins

Question 10

In a requirement contract

Answer 10

The buyer will purchase from the seller all of the goods of a certain type that the buyer needs or requires

Question 11

Output contact

Answer 11

Buyer and seller agree that the buyer will purchase from the seller all of what the seller produces/ output

Question 12

Two parts that consideration is broken down into

Answer 12

1 somthing of legally sufficient value must be given in exchange for the promise
And
2 there must be a bargained for exchange

Question 13

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

Answer 13

A release

Question 14

A release is binding if

Answer 14

1) the agreement is made in good faith
2) the release contract is in signed writing
3) the contract is accompanied by consideration

Question 15

Promissory estoppel

Answer 15

Applied when a promise is otherwise unenforceable, such as a promise with out consideration

Question 16

5 requirements to apply promissory estoppel

Answer 16

1) must be a clear definite promise
2) the promisor should have expected that the promisee would rely on the promise
3) the promisee’s reasonably relied on the promise by acting or refraining from some act
4) the promisee’s reliance was definite and resulted in substantial detriment
5) enforcement of the promise is nessisary to avoid injustice

Question 17

Shockingly inadequate consideration may indicate

Answer 17

Fraud
Duress
Undue influence

Question 18

A debt that is uncertain in amount

Answer 18

Unliquidated debt

Question 19

When one seeks additional consideration, offering no additional consideration in return,the —– rule prevents the party seeking the additional consideration from enforcing the agreement for the additional consideration

Answer 19

Précis ting duty rule

Question 20

Sale of goods under the UCC can modify a contract with no additional consideration as long as

Answer 20

You do so in good faith

Question 21

Nothing is promised, there is no consideration and no contract thus no agreement for the courts to enforce

Answer 21

Illusory promise

Question 22

Some

Contracts may appear illusory but they are not

Answer 22

Requirement contracts: buyer agrees to buy all goods needed of a particular type

Output contract: seller agrees to sell all goods produced of a particular type