BA 226 Ch. 12.1 Consideration
Liquidated Debt
A debt that is due and certain in amount.
Unliquidated Debt
A debt that is uncertain in amount.
A preexisting duty might exist because of ____ and ____
A duty imposed by a previous contract, A duty imposed by law
Resission
A remedy whereby a contract is canceled and the parties are returned to the positions they occupied before the contract was made
When a debtor offers to pay, and a creditor accepts, a lesser amount than the creditor originally claimed was owed, the agreement is called:
An accord and satisfaction
Carmen agrees to cook 20 dinners for Hal. In exchange, Hal will repair all of the plumbing in Carmen's house. Carmen has offered legally sufficient consideration because Carmen has promised something of value.
True
If two parties substitute a new contract for an old one and the court finds that there was a preexisting duty, then the new contract will be invalid because there was no consideration
True
Shockingly inadequate consideration can indicate the existence of what exceptions? Choose 3:
Undue influence, duress, fraud
There must be a ____ and definite promise
Clear
In the interest of fairness and equity, the courts may allow an exception to the preexisting duty rule when ____
Contract performance involves unforeseen difficulties
An agreement to substitute a contractual obligation for another legal action is called a
Covenant not to sue
The promisor should have ____ that the promisee would rely on the promise
Expected
Enforcement of the promise is necessary to avoid ____
Injustice
Constance tells Jill, her best employee, that, "Your work is so good, if I like what you do over the next six months, I'll give you a $1,000 bonus." Constance does not give Jill the bonus so Jill sues. Most likely:
Jill will not win because this is an illusory promise without consideration
Sergio contracts to hire Belinda to work for him at $3,000 per month, reserving the right to cancel the contract at any time. Two days before Belinda is scheduled to start work, Sergio exercises his option-to-cancel clause. Will Belinda be successful in a lawsuit against Sergio?
No, because the promise was illusory and therefore unenforceable
Something legally sufficient value may consist of the performance of an action that one is otherwise not ____ to undertake. Something of legally sufficient value may consist of the ____ from an action that one has a legal right to undertake, called a forbearance
Obligated Refraining
Something of legally sufficient value may consist of a promise to do something that no one has no ____ legal duty to do
Prior
The promise ____ relied on the promise by acting or ____ from some act
Reasonably, Refraining
Francisca collides with Wyatt's car. Francisca writes Wyatt a letter offering to pay Wyatt $10,000 if he agrees to forfeit all of his rights to pursue a lawsuit. If Wyatt agrees and signs the letter, Wyatt will have agreed to a(n):
Release
Past Consideration
Something given or some act done in the past, which cannot ordinarily be consideration for a later bargain
Consideration can be defined as
Something of value given in exchange for a promise
The promisee's reliance was definite and resulted in ____ detriment
Substantial