Quiz 2 Chapter 10 Halpern Flashcards
Consideration (as a rule)
What a person will receive in return for performing a contract obligation
A benefit to the promisor
Promise to stay in a job until a particular project is complete
A detriment to the promisee
A promise to your football coach to refrain from riding your motorcycle during football season even though you love riding it
A promise to do something
A promise to cook dinner for your roommate for the next 6 months
A promise to refrain from doing something
A promise to stop drinking alcohol during exam weeks
Lack of Consideration (rule)
For a promise to be enforced by the courts, there must be consideration.
Promise only enforced if the other party promised something
Unilateral Contract (in the lack of consideration rule)
One party’s consideration = promise
other party’s consideration = the act
Promissory Estoppel (rule)
The legal enforcement of an otherwise unenforceable contract due to a party’s detrimental reliance on the contract
Three conditions for Promissory Estoppel
One party makes a promise knowing the other relies on it
Party relies on the promise
The only way to avoid injustice is to enforce the promise
Adequacy of Consideration (rule)
The court seldom considers adequacy of consideration
this means the court does NOT weigh whether you made a good bargain
Illusory Promise (rule)
Not a promise at all, and not consideration
Past consideration (rule)
It is no consideration at all, and consideration is essential for contracts
Pre-existing Duty (rule)
Promise to do something that you already are obligated to do is NOT a valid consideration
2 parts to Pre-existing Duty
Performance of a duty you are obligated to do under the law is not good consideration
Performance of an existing contractual duty is not good consideration
Exceptions to the Preexisting-Duty rule
Unforeseen circumstances (if they cause a party to make a promise regarding an unfinished project, it is valid consideration)
Additional work (if agree to do more work, it is valid consideration)
UCC-sale of goods
Partial payment of a debt
May or may not be valid consideration
depends on if debt is liquidated
Liquidated Debt
No dispute that money is owed, and how much is owed
Exception to Liquidated Debt
If the debtor offers different performance
Unliquidated debt
parties dispute the fact that any money is owed, or how much is owed
Accord And Satisfaction
Arrangement between contracting parties where one of the parties substitutes a different performance for their original duty under contract
3 Requirements for Accord and Satisfaction to be enforceable
Debt is unliquidated
Creditor agrees to accept as full payment less than the creditor claims is owed
Debtor pays the amount they have agreed on
Accord
Promise to perform the new duty
Satisfaction
The actual performance of the new duty from an accord
UCC Section 3-311
2 Major exceptions to Accord + Satisfaction
Businesses notify debtors to settle a claim with a particular person
Business has 90 days to offer repayment to the debtor
