Consideration, Contracts in writing

Question 1

Consideration

Answer 1

the value that is given in exchange for something else; required to make a promise enforceable and is only present when the parties intend to make the exchange

Question 2

Bilateral Contract

Answer 2

a promise given in exchange for another promise

Question 3

Unilateral Contract

Answer 3

a promise exchanged for a completed act or a forbearance to act

Question 4

Legal Sufficiency

Answer 4

consideration for the promise must be either a legal detriment to the promisee or a legal benefit to the promisor; the promisee must give up something of legal value or the promisor must receive something of legal value

Question 5

Legal detriment

Answer 5

any act which imposes the slightest trouble or inconvenience on the promisee that he/she was not under any prior obligation to do

Question 6

Legal benefit

Answer 6

the promisor receiving any slight value that he/she had no prior legal right to obtain

Question 7

Illusory promises

Answer 7

statement in the form of a promise but imposes no actual obligation upon the maker of the statement

Question 8

Best efforts provisions

Answer 8

the obligation of a party to use its best efforts in performance IS legal consideration and the contract is NOT illusory

Question 9

Pre-existing contractual obligation

Answer 9

law does not regard performance of a pre-existing legal duty (rules of society by force of common law or statute) as a legal detriment or legal benefit and therefore it does not support consideration

Question 10

Legal subject matter

Answer 10

main element of an enforceable contract

Question 11

Factors Leading to Illegal Subject Matter:

Answer 11

Violation of statutes & violation of public policy,

Question 12

statute of frauds

Answer 12

requires that certain designated types of contracts be evidenced by writing, aims to prevent fraud in the proof of certain oral contracts (listed below)

Question 13

guarantee/suretyship contracts

Answer 13

“If X doesn’t pay, I will pay…” → promise by a surety to a creditor to perform the duties or obligations of a third person

Question 14

real estate contracts

Answer 14

contracts- purchase/sale, mortgage, leases, licenses, etc.

Question 15

one year provision contracts

Answer 15

contracts incapable of performance within one year from the date made (NOT one year from the date performance begins) must be in writing

Question 16

Sale of goods under UCC

Answer 16

contracts- sale of goods more than $500 requires writing

Question 17

type of writing required- must include:

Answer 17

Id of parties, id of subject matter and consideration/terms of unperformed promises, signed by party to be charged for

Question 18

parol evidence rule

Answer 18

Once parties express their contract in writing, rule excludes prior oral or written negotiations, says that any evidence that is outside written contract is excluded