Chapter 13 Worksheets

Elements That Are Required for the Promissory Estoppel Doctrine to Be Applicable

1. There must be a clear and definite promise 2. The promisor should have expected that the promise would rely on the promise 3. The promise 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

Preexisting duty

A _____ _____ might exist because of a duty imposed by a previous contract or a duty imposed by a law

Accord

A basic rule is that there can be no satisfaction unless there is first an _____

Liquidated debt

A debt that is due and certain in amount

Unliquidated debt

A debt that is uncertain in amount

Rescission

A remedy whereby a contract is canceled and the parties are returned to the positions they occupied before the contract was made

Covenant not to sue

An agreement to substitute a contractual obligation for another legal action is called a ____ ____ ___ ___

Can; cannot

An award is posted by a private group for information leading to the arrest of a criminal. The following _____ claim such an award: -non-residents -residents with work visas -senior citizens -emancipated minors and the the following ______: -sheriffs

Value

Consideration is the ______ given in exchange for a promise. A contract cannot be formed without sufficient consideration

Not win

Constance tell 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 ______ because this is an *illusory promise without consideration*

No

Dewitt tells his daughter: "In consideration of the fact that you are not as wealthy as your sisters, I'm going to give you $100,000." Is the element of bargained-for exchange present here? ______, because in fact no consideration has been given

Release

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):

No consideration

Past consideration is the equivalent of __ _______

No, illusory

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? _____, because the promise was _______ and therefore unenforceable

Fraud

Shockingly inadequate consideration can indicate the existence of what exceptions? 1. Undue influence 2. Duress 3. _______

Past consideration

Something given or some act done in the past, which cannot ordinarily be consideration for a later bargain

Prior legal duty

Something of legally sufficient value may consist of a promise to do something that one had no ______ _____ ______ to do

Refraining

Something of legally sufficient value may consist of the performance of an action that one is otherwise not obligated to undertake. Something of legally sufficient value may consist of _______ from an action that one has a legal right to undertake (called a forbearance).

Legal value

Something of legally sufficient value must be given in exchange for a promise. This may consist of a promise, a performance a forbearance

False

T/F An accord and satisfaction can be used to settle any contract dispute with respect to any type of debt

True

T/F Carmen agrees to cook twenty 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.

False

T/F Freedom of contract is absolute even in the presence of undue influence

False

T/F If a promise is made without consideration, it can never be enforced

False

T/F If an employer asks a current employee to sign a non-compete agreement, his or her employment is sufficient consideration for the agreement

True

T/F 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

Fale

T/F Jenkins agrees to repaint Celia's apartment in exchange for her used tablet device. When he is three-quarters of the way finished, he says he will not continue unless she also gives him her used smartphone. His legal position is such that he can receive the smartphone in exchange for finishing the job because he has given good and fair consideration in exchange.

False

T/F Promissory estoppel and the doctrine of quasi contract are equivalent

False

T/F Promissory estoppel requires a promise with consideration to apply.

True

T/F Something does not have to be of direct economic or financial value to be considered legally sufficient consideration

False

T/F Something must be of established market value to be considered legally sufficient consideration

False

T/F Yolanda's parents tell her that if she builds a house with her own funds on land that they own, they will give her the land. If they refuse to do so after Yolanda finishes the house, she will NOT be able to use the doctrine of promissory estoppel because it does not apply to family disputes

Second element of consideration

The _____ _____ __ ______ is that is must provide the basis for the bargain so the item of value must be given or promised by the promisor in return for the promisee's: promise, performance, or promise of performance

Executory

The law recognized that two parties can mutually agree to cancel their contract to the extent that it is _____

Bargained for exchange

There must be a bargained-for exchange

Accord and satisfaction

When a debtor offers to pay a lesser amount than the creditor originally claimed was owe, and a creditor accepts, the agreement is called an:

Estopped

When all of the requirements are met to state a claim under the doctrine of promissory estoppel, the promisor will be ______ from asserting the lack of consideration as a defense

Consideration

Can be defined as something of value given in exchange for a promise

Attorney or notary

In most states, a legally binding release does NOT require the signature of an _______ ___ ______. But it DOES require consideration and a signed writing

Unforeseen difficulties

In the interest of fairness and equity, the courts may allow an exception to the preexisting duty rule when contract performance involves _____ _____

In dispute

You owe monthly payments on a car loan at fixed interest. After making eleven payments, you go to the bank and ask it to make an accord and satisfaction for a lesser amount. Will you succeed? No, because your debt is a liquidated debt and therefore is not ___ _______

Promissory estoppel

____ ____ requires that justice be better served by enforcement of the promise