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What is consideration?
When a party gives (or promises to give) a benefit to someone else or suffers (or promises to suffer) a detriment to itself.
Consideration must move from both sides of the contract, but not necessarily given to the other side.
What is sufficient consideration?
Almost anything of value.
What is adequate consideration?
Essententially same value as the consideration for which it is exchanged.
What is a pre-existing obligation?
An obligation that existed, but was not actually preformed before the contract was contemplated.
Is a pre-existing public duty obligation considered sufficient consideration?
NO! Firefighters and police have to do their job.
Is a pre-existing obligation to owed to third party considered sufficient consideration?
Yes. It is very important for business.
Is a pre-existing obligation owed to the same party considered sufficient consideration?
No, the same person cannot be required to pay twice for the same benefit.
Promise to forgive an existing debt for a smaller sum can be used under what two conditions?
Promise to accept smaller sum is enforceable if it is placed under seal.
If the debtor gives something new in exchange for it.
What is promissory estoppel?
A doctrine that prevents a party from retracting a promise that another party has relied upon.
What is a forbearance to sue?
Promise not to pursue a lawsuit.
What is a seal?
A mark put on a written contract to indicate a party's intention to be bond by the terms even though the other party may not have given consideration.
What is an estoppel?
A rule that precludes a person from disputing or retracting a statment that they made earlier.
What is the application requirements for promissory estoppel?
1. The representor must clearly that it will not enforce its legal rights against the representee.
2. The representee must rely on the statement in a way that would make it unfair for the representor to retract its promise.
3. The representee must not be guilty of inequitable behaviour.
4. The reprsentor's statment must be made in the context of an existing legal relationship.
Who is a representor?
The party making the promise.
Who is a representee?
The party recieving the promise.
Who is a stranger?
Someone who did not participatein the creation of the contract.
What is privity of contract?
A doctrine that refers to the relationship that exists between the individuals who create a contract.
What are the exceptions for the privity doctrine?
What is assignment?
A process in which a contractual party transfers its rights ti a third party.
Who is the assignor?
The contractual party who assigns its contractual rights.
Who is the assignee?
The stranger to whom the contractual rights are assigned.
Who is the debtor?
The original contracting party against whom the assigned right can be enforced.
What is an equitable assignment?
An assignment that was traditionally enforced by the courts of equity.
What is a statutory assignment?
An assignment that conforms to the requuirements of a statute.
What 3 special requirements are statutory assignments subject to?
1. Must be written.
2. Written notice is required.
3. Must be absolute at the time that it is created. (Not conditional)
True or false: A statutory assignment is simply an alternative to an equitable assignment.
What is an example of an assignment by operation of law?
What is viarious performance?
Occurs when a contractual party arranges to have a stranger perform its obligations.
What is a trust?
When one person administers property on behlaf of another.
Who is the trustee?
The person who holds the property on behalf of another.
Who is the beneficiary?
The person on whose behalf the property is held.
Does an exlcusion clause saying that the customer cannot sue the company or its employees if something goes wrong cover an employee if they act carelessly?
No. The customer can sue them in tort.
What is a Himalaya Clause?
A special term of contract that protects a third party beneficiary from liability.
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