Chapter 8 Review Flashcards
Three most important element in forming a contract is
Offer
Agreement
Consideration
Consideration is
Something of legal value that each party gives to the contract.
Promiser
Creating the promises
Promisee
to whom the promise is made too
Gift
Voluntary transfer of property w/o consideration
legal detriment
sacrifice of offeree
What are the sacrifices of an offeree
- Does an act or promise their not legally obligated to do
2. Refraining from doing something their legally obligated to do
What is the Adequacy of Consideration
To protect individuals from contract that favors one sode more and is considered unfair
Nominal Consideration
dollar or other small amount of money used to bind a contract
Moral Consideration
makes a promise because they feel it’s the right thing to do
Past Consideration
promise made for an act that has already taken place
What are some problems to considerations
- pre-existing contract agreements
2.pre-existing duty to pay debt
3,pre-existing obligation to perform an legal obilgations
Liquidated Claim
debt in an amount that CANT be disputed
Unliquidated Claim
debt amount that can be disputed
Composition of creditors
agreement among creditors to accept an % of total owed in full settlement of debt.
Consideration is needed to make a promise legal
True or False
True
A promise to make a gift is enforceable in a court of law
True or False
False
A promise to refrain from doing something that the law requires is consideration
True or False
False
Forbearance is a promise to do something you are not legally required to do.
True or False
False
pledge
promise to make a gift charitable, religious and educational instiution
promissonary estoppel
equity applied to the courts if a promise is unsupported by consideration
Promises made to charitable organizations that depends upon voluntary contributions are generally enforceable without consideration
True or False
True
As creditors promise to accept less than the amount owed as full payment of a debt is legally binding
True or False
False
Part payment of a debt may cancel the entire debt if there is an honest dispute over the exact amount of debt True or False
True
A debtor who makes a part payment of the debt before the due date is no longer liable for the balance
True or False
True
A liquidated debt is one that is not in dispute.
True or False
True
