19 terms

Business Law 12

something of Legally Sufficient Value must be given in exchange for the promise or the performance of an action that one is otherwise not obligated to undertake
legally sufficient value
a promise to do something that one has no prior legal duty to do
the refraining from an action that one has a legal right to undertake
Consideration in Bilateral Contracts
promise in return for a promise
Consideration in Unilateral Contracts
promise in return for a performance
Preexisting Duty
a promise to do what one already has a legal duty to do, no consideration
unforeseen difficulties
when the unforeseen difficulties that give rise to a contract modification are the types of risks ordinarily assumed in business and the courts will assert the preexisting duty rule
rescission and new contract
two parties can mutually agree to cancel their contract
the unmaking of a contract so as to return the parties to the positions they occupied before the contract was made
Past Consideration
promises made in return for actions or events that have already taken place are unenforceable (past consideration is no consideration)
Illusory Promises
when the nature or extent of performance is too uncertain, the promise is rendered illusory and unenforceable
option to cancel clauses
when the promisor has the option to cancel the contract before performance has begun
requirements contract
a buyer and seller agree that the buyer will purchase from the seller all of the goods of a designated type that they buyer needs, or requires
output contracts
the buyer and seller agree that the buyer will purchase from the seller all of what the seller produces, or the seller's output
Accord and Satisfaction
a debtor offers to pay, and a creditor accepts, a lesser amount than the creditor originally claimed was owed, only with unliquidated debt
Liquidated Debt
one whose amount has been ascertained, fixed, agreed on, settled, or exactly determined, no accord and satisfaction can take place
a contract in which one party forfeits the right to pursue a legal claim against the other party
Covenant Not to Sue
parties substitute a contractual obligation for some other type of legal action based on a valid claim
promissory estoppel
change in direction in reliance on a contract