Chapter 15 Flashcards
Consideration
required in every contract - what a person will receive in return for performing a contract obligation - mutual exchange of something of value
A benefit to the promise
a promise to stay in a job until a particular project is complete
A detriment to the promisor
a promise to your football coach to refrain from riding your motorcycle during football season
Types of consideration
a benefit to the promise, a detriment to the promisor, a promise to do something, a promise to refrain from doing something
bilateral contract
promise for a promise
unilateral contract
promise for an act
Exception to consideration
promissory estoppel
when does promissory estoppel occur
- one party makes a promise and either knows or should know that the other party with reasonable rely on it
- the other party does reasonably rely on the promise
- the only way to avoid injustice is to enforce the promise
past consideration
no consideration at all
second exception to consideration
contract under seal
when does a court look at adequacy of consideration (if it was a fair trade)
if fraud or undue influence occured
preexisting duty
performance of a duty you are obligated to do under the law is not good consideration - a promise to do something that you are already obligated to do is not valid consideration
exceptions to preexisting duty rule
unforeseen circumstances, additional work, UUC Article 2
additional work
if a party to a contract agrees to additional work, the promise to do it is valid consideration
liquidated debt
no dispute about the fact that money is owed
