K Formation Part 2 Flashcards
What must an advertisement include to constitute an offer?
The language in the advertisement must be specific enough to indicate commitment and invite acceptance in clear, definite, express, and unconditional language.
Can an advertisement directed at a specific sub-group constitute an offer?
Yes, if it is specific in what it is offering.
What is the effect of an advertisement intended as a joke?
It cannot be sufficiently clear to constitute an offer.
What is the Bargained for Exchange Test?
It requires that the promise must induce the detriment and the detriment must induce the promise.
What constitutes Legal Value in consideration?
It can be either (1) the detriment to the promisee or (2) the benefit to the promisor.
What does 2ndR §71(3) state about detriment?
Any act, forbearance, or creation, modification, or destruction of a legal relationship will be sufficient to sustain a promise.
What is the rule regarding the adequacy of consideration?
Courts will not weigh the consideration or insist on a fair or even exchange; mere inadequacy of consideration will not void a contract.
What is the Recital of Consideration & Nominal Consideration Rule?
A mere pretense of bargain does not suffice, and agreements not supported by consideration are unenforceable.
What is the rule regarding gratuitous promises?
An executory gratuitous promise lacks consideration and is unenforceable, but an executed gift cannot be rescinded.
What is a rebuttable presumption regarding promises between family members?
There is a rebuttable presumption that services rendered among family members are gratuitous.
What is the rule on past consideration?
A promise based on consideration received in the past is generally unenforceable since it was not bargained for.
What defines an illusory promise?
An illusory promise is one that promises nothing and does not bind or confine the freedom of the promisor.
What is the Pre-existing Duty Rule?
Performance of a legal duty owed to a promisor is not consideration unless it differs from what was required by the duty.
What are the three types of Pre-existing Legal Duties?
- Public Legal Duty 2. Public Duty of Private Citizens 3. Contractual Legal Duties.
What is the rule regarding unenforceable contract modifications?
A new promise cannot be enforced if based solely on an existing contractual obligation.
