Business Law Chapter 13 and 14

ratify a contract

ratification; the act of accepting and giving legal force to an obligation that previously was not enforceable -express: takes place when states or in writing -implied: indicates the intent to abide by the contract

rescission

rescind, the unmaking of a contract so as to return the parties to the positions they occupied before the contract was made

Disaffirm a contract (disaffirmance)

the legal avoidance, or setting aside, of a contractual obligation a minor must express his or her intent thought words or conduct not the be bound to the contract (the entire thing)

consideration

the value (such as cash) given in return for a promise (in a bilateral contract) or in return for a performance (in a unilateral contract) Two Parts: -something legally sufficient value must be given in exchange for the promise -there must be a bargained-for exchange

non-complete agreement

(covenant not to complete) may be created when a seller of a store agrees not to open a new store in a certain geographic area surrounding old business

For the promissory estoppel to be applied, the following are required:

1. There must be clear and definite promise 2. The promisor should have expected that the promisee would rely on the promise 3. The promisee reasonably relied on the promise by acting or refraining from some act 4. The promisee's reliance was definite and resulted in substantial detriment 5. Enforcement of the promise is necessary to avoid injustice

three forms of consideration (something of legally sufficient value)

1. a promise to do something that one has no prior legal duty to do 2. The performance of an action that one is otherwise not obligated to undertake 3. the refraining from an action that one has a legal right to undertake (called a forebearance)

CHAPTER 14

CHAPTER 14

promissory estoppel

detrimental reliance; a person who has reasonably and substantially relied on the promise of another may be able to obtain some measure of recovery

unconscionable

in certain circumstances, bargains are so oppressive that the courts relieve innocent parties of part or all of their duties deemed this because they are so unscrupulous (not honest or fair) or grossly unfair as the be "void of conscience"

usury

lender who makes a loan at an interest rate above the lawful maximum

promissory estoppel

wide variety of contexts in which a promise is otherwise unenforceable, such as when a promise made without consideration equitable remedy when there is no valid contract