Quiz 3 Definitions Flashcards
Consideration?
Something promised or done that has the effect of making the agreement legally enforceable.
Bargained for exchange
Each party gets something not entitled to before the contract, and each party gives something. It is the give and take.
Illusory
The states consideration does not really oblige the party. It only appears the party is obligated
Subjective standard
A decision based on an individual’s personal bias and beliefs.
Objective standard
Decision that is not based on individual bias or belief but ether a more general standard. ORP person
Gift
A completed transfer of property without consideration. A person receiving a gift is not obligated to do anything in return
Forbearance
Not doing something you have the legal right to do
Promissory estoppel
Theory under which a promise can be enforced, despite lack of consideration because of reliance on that promise and knowledge of that reliance
Pre-existing duty
Promising to do something that one already has a legal obligation to do. It is also forbearing from doing something which the person is not legally entitled to do.
Sham consideration
The stated consideration that did not really occur. The term consideration is used but not given.
Condition precedent
An event that must occur before the contemplated transaction/contract is complete
Condition subsequent
An event that may undo an executed contract and which is out of control of the parties
Exclusive dealing
A contract wherein the parties to the contract agree to deal only with each other with respect to their particular needs
Accord and satisfaction
An agreement to give and accept payment that is different from that stated in the original contract
Liquidated debt
A debt for which the amount owed is not in dispute
