chapter 15 and 16

Question 1

consideration

Answer 1

what every person will receive in return for performing a contrat obligation

Question 2

promissory estoppel

Answer 2

1)one party makes a promise knowing the other party will rely on it 2) the other party does rely on the promise 3) the only way to avoid injustice is to enforce the promise

Question 3

illusory promise

Answer 3

not a promis or consideration

Question 4

preexisting duty

Answer 4

preformance of a duty you are obligated to do under the law is not good consideration and performance of an existing contractual duty is not good consideration

Question 5

requirement contract

Answer 5

an agreement whereby the buyer agrees to purchase all his or her goods from one seller

Question 6

liquidated debt

Answer 6

there is no dispute that money is owed or how much

Question 7

output contract

Answer 7

an agreement whereby the seller guarantees to sell everything he or she produces to one buyer

Question 8

unliquidated debt

Answer 8

the parties either disagree about whether money is owed or dispute the amount

Question 9

accord and satisfaction

Answer 9

1)the debt is unliquidated(the amount or existence of the debt is in dispute) 2) the credito agrees to accept as full payment less than it claims is owed 3) the debtor pays the amount they have agreed on

Question 10

capacity

Answer 10

the mental ability to understand his or her rights and obligations under a contract and therefore presumably to comply with the terms

Question 11

age of minority

Answer 11

18

Question 12

usury

Answer 12

occurs when a party gives a loan at an intrest rate exceeding the legal maximum

Question 13

gambling

Answer 13

refers to agreements in which the parties pay consideration (money placed during bets) for the chance or opportunity to obtain an amount of money or property

Question 14

sabbath laws

Answer 14

limit the types of business activities in which parties can legally engage on sundays

Question 15

convenants not to compete

Answer 15

alson know as restrictive covenants; when courts determine a restraint on trade is reasonable, however, and the restraint is part of a subordinate, or ancillary, clause in the contract, the restraint is typically allowed

Question 16

unconscionable

Answer 16

contracts that are so one sided that the courts will not make the innocent party be harmed by fulfilling his or her contractual duties

Question 17

procedural unconscionability

Answer 17

describes conditions that impair one party’s understanding of a contract, as well as the integreation of terms into a contract

Question 18

adhesion contract

Answer 18

an agreement presented on a take it or leave it basis or as the only chance the presented party (the adherring party) will have to enter into it

Question 19

substantive unconscionability

Answer 19

occurs when an agreement is overly harsh or lopsided

Question 20

exculpatory clause

Answer 20

releases one of the contracting parties from all liability, regardless of who is at fault or what injury is suffered

Question 21

in pari delicto

Answer 21

both parties are equally responsible for the illegal agreement

Question 22

severable contracts

Answer 22

also known as divisible contracts, contain multiple parts that can each be preformed seperatly and for which separate consideration is offered

Question 23

indivisible contract

Answer 23

requires complete preformance by both parties, even if it appears to contain multiple parts.