BLW 201 Ch. 12

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BLW 201 Ch. 12
2010-06-05 12:31:35

Chapter 12 terms
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  1. Consideration
    • the inducement to enter into a contract
    • legal sufficiency and bargained-for exchange
  2. Legal Sufficiency
    consists of either a benefit to the promisor or a detriment to the promise

    two types: legal benefit and legal detriment
  3. Legal Benefit
    obtaining something to which one had no prior legal right
  4. Legal Detriment
    doing an act one is not legally obligated to do or not doing an act that one has a legal right to do
  5. Adequacy
    not required where the parties have freely agreed to the exchange
  6. illusory promise
    • promise that imposes no obligation on the promisor
    • not including: output contract, requirements contract, exclusive dealing contract, or conditional promise
  7. output contract
    agreement to sell all of one's production to a single buyer
  8. requirements contract
    agreement to buy all of one's needs from a single producer
  9. exclusive dealing contract
    grant to a franchisee or a licensee by a manufacturer producer
  10. conditional promise
    one where the obligations are contingent upon the occurrence of a stated event
  11. preeexisting public obligations
    public duties such as those imposed by tort or criminal law are neither a legal detriment nor a legal benefit
  12. preexisting contractual obligation
    performance of a preexisting contractual duty is not consideration
  13. modification of a preexisting contract
    under the common law a modification of a preexisting contract must be supported by mutual consideration; under the Code a contract can be modified without new consultation
  14. substituted contracts
    the parties agree to rescind their original contract and to enter into a new one; rescission and new contract are supported by consideration
  15. settlement of a disputed debt
    payment of a lesser sum of money to discharge a disputed debt (one whose existence or amount is contested) is legally sufficient consideration
  16. Bargained-for exchange
    a mutually agreed-upon exchange
  17. past consideration
    an act done before the contract is made is not consideration
  18. promise to pay debt barred by the statute of limitations
    a new promise by the debtor to pay the debt renews the running of the statute for a second statutory period
  19. promise to pay debt discharged in bankruptcy
    may be enforceable without consideration
  20. voidable promises
    a new promise to perform a voidable obligation that has not been previously avoided is enforceable
  21. moral obligation
    a promise made to satisfy a preexisting moral obligation is generally unenforceable for lack of consideration
  22. promisory estoppel
    doctrine that prohibits a party from denying her promise when the promisee takes action or forbearance to his detriment reasonably based upon the promise
  23. promises under seal
    where still recognized, the seal acts as a substitute for consideration
  24. promises made enforceable by statute
    some gratuitous promises have been made enforceable by statute; the Code makes enforceable (1) contract modifications, (2) renunciatjions, and (3) firm offers