Definitions Flashcards
Bilateral Contract
both parties make at least one promise in exchange for a promise or promises made by the other.
Unilateral Contract
only one party makes a promise or promises, in exchange for a performance or in exchange for a forbearance form acting by the other, not in exchange for a promise by the other to act or forbear.
Terms
may be expressed in language, oral, or written, or may be implied form non-verbal behavior or circumstance.
Promise
R.2d Contracts 2 :
a manifestation of intent to act or refrain from acting in a specified way, so made as to justify a promisee in understanding that a commitment has been made.
Obligation
Duty
Third-Party Beneficiary
When the performance of the party will benefit someone other than the parties involved.
Term
portion of an agreement that relates to a particular matter.
Restitution
Theory of obligation
Consideration
An exchange or bargained for promises between two or more parties. Must be legal and bargained for. Both parties must place value on the contract prior to execution.
Consideration - Legally Sufficient Value
Cannot promise to do something where there is already a legal obligation to do so
Bargain
an exchange of promise and something of value where both parties gain an reward and received detriment.
Past Consideration
one party makes a promise in recognition of a benefit previously received from the other party
Gratuitous Promise
a promise that is made without consideration and is usually unenforceable. No bargaining for return promise or performance.
Rachel promises her friend Stephanie to split her lottery winnings 50/50 if she wins. Is it enforceable?
No, there is no consideration. This is a gratuitous promise.
Promissory Estopple
treats the promisee’s reliance as an independent and sufficient basis for enforcement.
A promisee can obtain enforcement even though consideration is lacking.
Restatement 90
Promissory Estopple - source
Restatement §90: A promise which the promisor should reasonably expect to induce action or forbearance on the part of the promisee or a third person and which does induce such action or forbearance is binding if injustice can be avoided only by enforcement of the promise. The remedy granted for breach may be limited as justice requires.
Contract
Restatement §17 requires a bargain and a consideration except where special rules apply.
Hamer v. Sidway
Forbearance proves consideration
A promises to pay B $10,000 if she quits her job as a bartender and goes to law school. Payment to be made on graduation day. A is a lawyer.
Enforceable, Hamer v. Sidway, there was a bargain, and consideration - B quitting her job to go to law school. She would not have done so without the promise from A.
B wants to quit bartending and go to law school, but will have to take out massive loans. To help B, A offers to pay $10,000 of her loans
Enforceable, Ricketts v. Scothorn, A’s promise induced B to act. Proving consideration, B would not have acted without A’s promise.
B wants to go to law school. A promises to give B $10,000 after she graduates
Unenforceable, Gratuitous Promise, No consideration.
Inducement
the inducement is a pledge or promise that causes an individual to enter into a particular agreement.
Ricketts v. Scothorn
promises that are relied upon by the donee to her detriment will be enforced on that ground even though consideration is lacking.
Executed Gift
One cannot reclaim a gift once it has been given.
