Consideration

Question 1

What is an example of pre-existing duty?

Answer 1

A cop cannot collect a reward for arresting a criminal because that is part of his job.

Question 2

How many years pertain to the statute of limitations under UCC?

Answer 2

4 years

Question 3

What are the exceptions to the consideration requirement?

Answer 3

1. Estoppel
2. Statute of Limitations
3. Bankruptcy

Question 4

What are the requirements for a consideration in a contract?

Answer 4

Each party to the contract has a benefit and detriment.

Question 5

Define “accord and satisfaction.”

Answer 5

An accord is an agreement to waive legal rights, releases another party from legal obligations.

Satisfaction is the actual payment of the amounts agree to in the accord.

Question 6

Define liquidated debt.

Answer 6

One in which the amount due is agreed upon (e.g., payment installment)

Question 7

Define unliquidated debt.

Answer 7

One in which the parties
acknowledge a debt but disagree as to the amount
that is due

Question 8

T/F: Consideration is required for the formation of a contract.

Answer 8

True. This includes offers & acceptance as well.

Question 9

What are the elements that make a consideration “legally satisfied?”

Answer 9

1. Bargained-for exchange

2. Legal value