chapter 10 (consideratoin)
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12 terms
Terms | Definitions |
|---|---|
 Consideration | A contract must be supported by _______ |
| Consideration is: | - an exchange of something of legal value - bargain for exchange Ex: (property, $, etc) (service, doctor, lawyer, etc) (Forbearance) |
| Forbearance | Giving up your right that your legally entitled to |
| Adequacy if Consideration | - Exchange does NOT need to be "fair" - You a free to make good or bad deal Unless: fraud, duress, undue influence and certain mistakes |
| Preexisting Duty Rule | Rule prevents: a party seeking "additional consideration" |
| Preexisting Duty Rule | wants to prevent extortion, however, they want to allow honest and sincere changes to be enforced thus the exceptions exist: |
| Preexisting Duty Rule wants to prevent extortion, however, they want to allow honest and sincere changes to be enforced thus the exceptions exist: | 1. Rescission - the courts would be on the lookout for anything that appeared to be at attempt to extort additional $ etc |
| Preexisting Duty Rule wants to prevent extortion, however, they want to allow honest and sincere changes to be enforced thus the exceptions exist: | 2. Sale of Goods under the UCC - can modify a contract with no additional consideration as long as you do so in GOOD FAITH. |
| Preexisting Duty Rule wants to prevent extortion, however, they want to allow honest and sincere changes to be enforced thus the exceptions exist: | 3. Unforeseen Difficulties - some circumstance occurs that is now a normal risk associated with the type of contract (something has occurred which the parties could not foresee) |
| Preexisting Duty Rule wants to prevent extortion, however, they want to allow honest and sincere changes to be enforced thus the exceptions exist: | 4. New York - agree to the change in a signed writing and the changes will be enforceable |
| Past Consideration | When performance of the act is done before the contract in formed. A later promise to pay for the act is unenforceable. Note: NY - a signed writing will make past consideration valid. |
| Illusory Promise | ... |
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