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Chpt15 Consideration
Kubasek Dynamic Business Law Chapter 15
Question | Answer |
---|---|
Rule 1 of consideration | No consideration is not a valid contract |
Rule 2 of Consideration | Past consideration = no consideration |
Amount of Consideration | Court will not get involved regarding how much consideration |
Illusory promise | is not consideration |
Preexisting Duty | performance of a duty you are obligated to do under the law is not good consideration. A promise to do something that you are already obligated to do is not valid consideration. |
Consideration | is what a person will receive in return for performing a contract obligation |
Under Uniform Commercial Code (UCC) Article 2 (sale of goods) | an agreement modifying a contract needs NO consideration to be binding. |
Requirement contract | ontract is an agreement whereby the buyer agrees to purchase all of his goods from one seller. |
Output contract | contract is an agreement whereby the seller guarantees to sell everything she produces to one buyer. |
Liquidated Debt | there is no dispute about the fact that money is owed, and the amount of money owed. |
Unliquidated Debt | the parties either dispute the fact that any money is owed, or agree that some money is owed but dispute the amount. |
"accord and satisfaction" to be enforceable, | The debt is unliquidated; The creditor agrees to accept as full payment less than the creditor claims is owed; The debtor pays the amount he/she has agreed to pay. |
Promissory estoppel | occurs when one party makes a promise knowing the other party will rely on it, the other party does rely on it, and the only way to avoid injustice is to enforce the promise. |