Business Law Ch 15

_____ is best described as what a person will receive in return for performing a contract obligation.

Consideration

_____ are an exception to the common law rule requiring consideration.

Contracts under seal

Which of the following is true of an accord and satisfaction?

If a creditor inadvertently cashes a debtor's "paid in full" check, he can repay the debtor the same amount within 90 days to invalidate an accord and satisfaction.

Brian offers to sell Rachel his computer for $200. Rachel says that she will look at the computer in the morning, and if she likes it she will buy it for $200. At this point, Rachel has not committed to doing anything. This is an example of a(n):

illusory promise.

When there is no dispute over the amount of debt or existence of debt, it is referred to as a _____.

liquidated debt

In an unliquidated debt, an accord is best described as the:

new agreement to pay less than the creditor claims is owed.

In a liquidated debt, _____.

once the debtor provides a different, agreed, performance, the debt is satisfied and the creditor may not collect anything else

Kevin is offered a job by a reputed company in a different city. To take up the new job, Kevin quits his previous job and moves to the new city along with his family. When he shows up at work, he is told that there is no job. Kevin can sue the employer under the theory of _____.

promissory estoppel

A debt is unliquidated when:

the parties dispute over the existence or amount of the debt.

If a party to a contract asks for an additional amount of money and agrees to do more work than the contract requires, the result is that the promise

to do the extra work is valid consideration.