Business Law Chp 8
Terms
undefined, object
copy deck
- Gratuitous Promise
- A promise that does not require some benefit in return.
- Promise for a promise
- promise of money by one party for the promise of an act by another. Mere promise to act is deemed valid consideration. (does not have to include money)
- Adequacy of Consideration
- Has to do with valuation of contract matter changing according to need. Generally courts make NO attempt to judge whether or not exchange of promises in a contract is fair. Unless you are challenging... Court will NOT review.
- Consideration
- The promises exchanged by the parties to a contract; either to give up something of value they have a legal right to keep, such as money or property; to do something they are not otherwise legally required to do, such as performing a service, or to refrain from an action.
- Possibility of Performance
- An enforceable contract CANNOT be based on a promise that is IMPOSSIBLE to fulfill. If the task is difficult or runs into unexpected expenses, it is still expected to be performed.
- Promises of forbearance
- The promise of refraining from doing something that a party has a legal right to do. (delinquishing the right to do something you have legal right to do)
- Pledges or subscriptions
- A promise to donate money to a church, temple, mosque, hospital, college, cultural institution, or other charitable organization
- Past Consideration
- A promise to repay someone for a benefit after it has been received.
- Pre Existing Duty
- An obligation that a party is already bound to by law or by some other agreement. The party may not use this as consideration in a new contract.
- promise for a promise, promise of forbearance, pledges or subscriptions
- Kinds of Valid consideration
- Legality of Consideration
- Valid contract does not exist if the consideration is already required by law, or the consideration has anything to do with an illegal act.
- General Release
- A written agreement in which an aggrieved party can discharge in whole or in part a claim resulting from an alleged breach of contract
- Barren Promise
- A promise to pay an existing debt, or to obey the law, or a similar promise of something already owed.
- Moral Consideration
- Something that a person is not legally bound to do, but that he/she may feel bound to do because of love, friendship, honor, sympathy, conscience, or other reason.
- barren promise, gratuitous promise, agreements supported by moral consideration
- Agreements that Lack Consideration
- Legality of consideration, adequacy of consideration, possibility of performance
- Characteristics of Valid Consideration