Rules of Law

Question 1

A manifestation of intention to act or refrain from acting in a specified way, so made as to justify a promisee in understanding that a commitment has been made

Answer 1

promise

Question 2

Interpret language according to the objective and ordinary meaning of the words.

Answer 2

ordinary meaning

Question 3

technical terms and words of art are given their technical meaning

Answer 3

technical meaning

Question 4

words and conduct are interpreted in light of all the surrounding circumstances

Answer 4

surrounding circumstances - basic rule of interpretation

Question 5

The (insert rule here) requires a bargain in which there is a manifestation of mutual assent to the exchange and consideration

Answer 5

formation of a contract

Question 6

Every contract requires (?) on both sides of the transaction:

(?) consists of:
(1) a bargained for exchange between the parties, and
(2) that which is bargained for must be of legal value

Answer 6

consideration

Question 7

to establish (insert rule here), the promise must induce the detriment and the detriment must induce the promise

Answer 7

bargained for exchange

Question 8

(insert rule here) is established if there is either:
(1) a detriment to the promisee or (2) a benefit to the promisor

Answer 8

legal value

Question 9

an executory (?) promise lacks consideration and therefore is unenforceable as a contract

However, if the (?) promise is executed, then the promisor cannot rescind the promise

Answer 9

gratuitous promise

Question 10

mere (insert rule here) will not void a contract. There is no requirement that the things exchanged be of equal value.

Gross (insert rule here) may be relevant to prove a defense to formation, such as incapacity, duress, undue influence, misrepresentation and fraud, nondisclosure, unconscionability, or mistake.

If the purported consideration is nominal, then it is just a mere formality or pretense of a bargain and will not serve as consideration for a promise.

Answer 10

adequacy of consideration

Question 11

a promise or apparent promise is not consideration if by its terms the promisor or purported promisor reserves a choice of alternative performances unless

(a) each of the alternative performances would have been consideration if it alone had been bargained for

Answer 11

illusory promise

Question 12

promise based on consideration received in the past is generally unenforceable since it was not bargained for

Answer 12

past consideration

Question 13

(insert rule here) will not serve as consideration for the enforcement of a promise; however, it may be relevant as an independent basis to prevent unfairness or unjust enrichment

Answer 13

moral obligation

Question 14

performance of a legal duty owed to a promisor which is neither doubtful nor the subject of honest dispute is not consideration; but a similar performance is consideration if it differs from what was required by the duty in a way which reflects more than a pretense of bargain

Answer 14

preexisting legal duty rule

Question 15

Promise or set of promises for the breach of which the law gives a remedy, or the performance of which the law in some way recognizes a duty.

Answer 15

Contract