Part 2

Question 1

Consideration

Answer 1

Contracts must be a two way street, both parties agree

Question 2

Rules of consideration

Answer 2

1) both parties get something of measurable value, something that has real value. An agreement not to sue
2) a promise to give something of value and actually doing it
3) both parties must have bargained for the exchange. (can’t just do something and expect something in return)

Question 3

Act

Answer 3

You do something you weren’t legally required to do in the first place. Value

Question 4

Forbearance

Answer 4

Refraining from doing something that one has a legal right to do. Value

Question 5

Output contract

Answer 5

not sure yet

Question 6

Requirement contract

Answer 6

not sure yet

Question 7

How does common law courts view Output contract and Requirement contract?

Answer 7

Sees it as a void. Generally will not enforce them because of quantity

Question 8

How does the UCC modify the common law with regard to Output contract and Requirement contract?

Answer 8

UCC 2­.306­ expressly allows output and requirements contracts in the sale of goods, the code places one limitation on how much the buyer may demand (or the seller may offer) buyer should make its requirements demands In “good faith”

Question 9

Liquidated

Answer 9

A debt in which there is no dispute about the amount owed. You owe$5000 for rent

Question 10

Unliquidated

Answer 10

A debt that is disputed because the parties disagree over its existence or amount

Question 11

accord and satisfaction

Answer 11

A completed agreement to settle a debt for less than the sum claimed (what your demanding) – not liquidated

Question 12

Can a check be used to accomplish accord and satisfaction?

Answer 12

• “full statement”- accord and satisfaction, once cashed its binding
• “full payment of all debts”- unliquidated and once check is cashed you lost all rights to make a claim