chapter 15 and 16 Flashcards
consideration
what every person will receive in return for performing a contrat obligation
promissory estoppel
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
illusory promise
not a promis or consideration
preexisting duty
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
requirement contract
an agreement whereby the buyer agrees to purchase all his or her goods from one seller
liquidated debt
there is no dispute that money is owed or how much
output contract
an agreement whereby the seller guarantees to sell everything he or she produces to one buyer
unliquidated debt
the parties either disagree about whether money is owed or dispute the amount
accord and satisfaction
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
capacity
the mental ability to understand his or her rights and obligations under a contract and therefore presumably to comply with the terms
age of minority
18
usury
occurs when a party gives a loan at an intrest rate exceeding the legal maximum
gambling
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
sabbath laws
limit the types of business activities in which parties can legally engage on sundays
convenants not to compete
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
unconscionable
contracts that are so one sided that the courts will not make the innocent party be harmed by fulfilling his or her contractual duties
procedural unconscionability
describes conditions that impair one party’s understanding of a contract, as well as the integreation of terms into a contract
adhesion contract
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
substantive unconscionability
occurs when an agreement is overly harsh or lopsided
exculpatory clause
releases one of the contracting parties from all liability, regardless of who is at fault or what injury is suffered
in pari delicto
both parties are equally responsible for the illegal agreement
severable contracts
also known as divisible contracts, contain multiple parts that can each be preformed seperatly and for which separate consideration is offered
indivisible contract
requires complete preformance by both parties, even if it appears to contain multiple parts.
