Quiz 3 Vocab - Test 1 Flashcards
Bargained for exchange (Bargain)
each party gets something not entitled to before the contract, and each party gives something. It is the give and take. (Is used synonymously with consideration)
Consideration
Something promised or done that has the effect of making the agreement legally enforceable. . (Is used synonymously with bargained for exchange)
Illusory
The stated consideration does not really obligate the party. It only appears that the party is obligated.
Subjective Standard
A decision is based on an individual’s personal bias and beliefs.
Objective Standard
Decision that is not based on individual bias or belief but rather a more general standard - ORPPERSON
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 a 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 did not really occur. The term consideration is used, but it 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 the 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
