Term
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Definition
| Something that has legal value. A benefit conferred or a detriment incurred at the behest of the other party. |
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Term
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Definition
| The exchange of the exact object or service described in the contract. Usually a good or service that one side is selling and the other is purchasing. |
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Term
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Definition
For a detriment to qualify as consideration it must
1) Give up a legal right
2)At the request of the other party
3) in exchange for something of legal value
Example) Maria's mother wants her to quit smoking. Mom offers her 1000 dollars if she quits for a year. This is a contract unless it is marijuana because it is not a legal right to smoke it. |
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Term
| What is not Consideration |
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Definition
1) Past consideration
2) Moral consideration
3) A gift
4) Illusory promise (vague)
5)Obligations
Except if:
1) If new or differnt
consideration is given
2) The purpose is to ratify a voidable obligation
3) the duty is owed to a third person not the promisee
4) Unforeseen circumstances make the duty more difficult to fulfill |
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Term
| Sufficiency of the Consideration |
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Definition
Nominal Consideration: Has small monetary value.
Sham Consideration: Appears to have no true value at all. Usually a gift.
Conditional Promises: Based on the happening or nonhappening of an event |
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Term
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Definition
| Usually with Equity. When a person reasonably believes he has entered into a contract. |
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Term
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Definition
Accord and Satisfaction:
Making a new contract instead of suing. Must have
1) a valid contract
2)a dispute between the two parties with respect to that contract
3)an agreement to compromise the dispute rather than sue |
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Term
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Definition
1) a valid contract is entered into between two or more parties
2) the guarantor creates the guarantee at the time the contract is executed
3) the guarantee is in writing |
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