Quiz 2

Question 1

consideration

Answer 1

something of legal value given in exchange for a promise

Question 2

legal value

Answer 2

support for a contract when either (1) the promisee suffers a legal detriment or (2) the promisor receives a legal benefit

Question 3

bargained-for exchange

Answer 3

exchange that parties engage in that leads to an enforceable contract

Question 4

gift promise

Answer 4

a promise that in unenforceable because it lacks consideration

Question 5

illegal consideration

Answer 5

a promise to refrain form doing an illegal act. such a promise will not support a contract.

Question 6

illusory promise

Answer 6

a contract into which both parties enter but in which one or both of the parteis can choose not to perform their contractual obligation. Thus, the contract lacks consideration.

Question 7

preexisting duty

Answer 7

something a person is already under an obligation to do. a promsie lacks consideration if a person promises to perform a preexisting duty.

Question 8

past consideration

Answer 8

a prior act or performance. past consideration will not support a new contract. new consideration must be give.

Question 9

output contract

Answer 9

a contract in which a seller agrees to sell al of its production to a single buyer

Question 10

requirements contract

Answer 10

a contract in which a buyer agrees to purchas all of is requirements for an item from one seller

Question 11

best-efforts contract

Answer 11

a contract which contains a clause that requires both of the parteis to use their best efforts to achieve the objective of the contract

Question 12

accord

Answer 12

an agreement whereby the parties agree to accept something different in satisfaction of the original contract

Question 13

satisfaction

Answer 13

the performance of an accord

Question 14

promissory estoppel

Answer 14

an equitable doctrine that prevents the withdrawal of a promise by a promisor if it will adversely affect a promisee who has adjusted his or her position in justifiable reliance on the promise

Question 15

infancy doctrine

Answer 15

a doctrine that allows minors to disaffirm most contracts they have entered into with adults

Question 16

disaffirm

Answer 16

the act of a minor to rescind a contract under the infancy doctrine. disaffirmance may be done orally, in writing, or by the minor’s conduct.

Question 17

duty of restoration

Answer 17

a rule that states that a minor is obligated only to return the goods or portpery he or she has received from the adult in the condition in at the time of disaffirmance

Question 18

usury law

Answer 18

a law that sets an upper limit on the interest rate that can be charges on certain types of loans

Question 19

in pari delicto

Answer 19

a situation in which both parties are equally at fault in an illegal contract

Question 20

genuiness of assent

Answer 20

the requirement that a prtys assent to a contract be genuine

Question 21

recission

Answer 21

an action to under the contract

Question 22

unilateral mistake

Answer 22

a mistake in which only one party is mistaken about a material fact regarding the subject matter of a contract

Question 23

duress

Answer 23

a situation in which one party threatens to do a wrongful act unless the other party enters into a contract

Question 24

undue influence

Answer 24

take advantage of state of person.