Term
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Definition
| value given or detriment suffered in exchange for a promise |
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Term
| Four types of Sufficient Consideration |
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Definition
1. consideration may be an act
2. the giving up of ones opportunity to exercise a legal right is sufficient considerations
3. a change in status may be sufficient consideration
4. there is a consideration if a promise is made to do any of the three types of consideration above. (To pay someone 50 dollars to do an act is a consideration, and so is promising someone $50 to do an act.) |
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Term
| Consideration to do an act |
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Definition
| if you promise to pay me a certain amount of money in return for my services as an attorney, my sercives and your payment of money both consititute an act |
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Term
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Definition
| may be sufficient consideration, suppose you and i are partners in the ownership of a certain company. if we agree to dissolve our partnership, that status change can count as consideration. (You pay me money to leave the company and give it all to you) |
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Term
| adequacy of consideration |
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Definition
| refers to fairness of the amount of consideration for what is received in exchange. ( I buy a BMW for 10,000 from you, but in the end it is worth 35,000. this is fine and there is a binding contract.) |
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Term
| Five types of insufficient considerations |
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Definition
1. an illusory promise is not sufficient
2.a gratuitous promise, a promise to make a gift, is insuffiencent consideration
3. past consideration is insufficient to create a valid contract
4. the promise to perform a pre-existing duty is insufficient consideration
5.nominal consideration is insufficient consideration |
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Term
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Definition
| a promise with no substance behind it, or one which is subject to the whim of the promisor. |
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Term
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Definition
| is a promise by one party to buy as many units of a certain product as that person requires in her business for a certain period of time. |
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Term
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Definition
| is an agree ment by a seller to sell as many units of a certain item as the seller can produce in certain period of time. |
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Term
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Definition
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Term
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Definition
| is an act or waiver of the legal right which has been done in the past, prior to the current promise sought to be enforced.(the plaintiffs father wanted his grandson to be named after him. he said he would give his son all the land if he did so. Grandfather did not know grandson was already named after him.) |
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Term
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Definition
| is a duty which existed prior to the promise to do it. In other words, If i promise not to kill you, supposedly in exchange for your promise to may me 50,000 i have simply prmised my pre-existing duty, and you certainly need not pay me the money. |
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Term
| Two ways to get around pre-existing duty rule |
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Definition
1. rescission and a new contract
2. promising to pay an unliquidated debt |
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Term
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Definition
| is the voluntary or court order cancellation of a contract. If there is a current contract in existence, and the parties agreed to cancel it (voluntary rescission), this is binding |
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Term
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Definition
| is a debt where the amount owed is uncertain, or perhaps nonexistent. For example, i have promised to pay you 10,000, but i find out that you lied about the characteristics of the product i bought from you. because of you fraud, my debt to you is unliquidated, since i might be able to avoid it or lessen it because of the misrepresentation |
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Term
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Definition
| consideration in such a low amount that it bears no logical relationship to what is received, so that it is consideration in name only. |
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Term
| Exceptions to consideration rule |
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Definition
1. Promises to pay debt barred by a statute of limitations are enforcable
2. reaffirmation agreements in bankruptcy are enforceable
3. charitable subscriptions are enforceable
4. the consideration requirement may be avoided through a doctrine called promissory estoppel. |
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Term
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Definition
| is an agreement in the bankruptcy process to pay a debt which would be normally discharged (cancelled) in bankruptcy. |
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Term
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Definition
| are agreements to make a donation to charity. |
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Term
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Definition
| a person whose promise leads another to rely on it to his or her detriment, may be obligated to fulfill that promise. |
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Term
| Three requirements for the doctrine of promissory estoppel to apply: |
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Definition
1. a promise made by the defendant
2. the plaintiff suffers detriment by reasonable reliance on the promise
3. enforcement of the promise is necessary to avoid justice |
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