Business Law - Chp 8 Vocab

Accord and Satisfaction

Parties' agreement to change the obligation required by their original contract and the performance of the new obligation

Composition with creditors

Agreement by all creditors to accept something less than the total amount of their claims as full payment

Consideration

What a person demands and generally must receive in order to make his or her promise legally binding

Donee

Person receiving a gift

Donor

Person giving a gift

Forbearance

Refraining from doing what one has a right to do

Gift

Voluntary transfer of ownership without consideration

Legal value

Change in the legal position of a party as a result of a contract

Liquidated debt

Debt for which the parties agree that the debt exists and on the amount of the debt

Nominal consideration

Token amount identified in a written contract when parties either cannot or do not wish to state the amount precisely

Output contract

Agreement to purchase all of a particular producer's production

Past consideration

Act that has already been performed cannot be consideration for a promise in the present

Promisee

Person to whom the promise or action is given in exchange for the other person's promise or action

Promisor

Person who gives the promise or action in exchange for the promise or action of another

Promissory estoppel

Enforcement of a promise to avoid injustice by denying to the promisor the defense of lack of consideration

Requirements contract

Seller agrees to supply all of the needs of a particular buyer

Release

Party settles a claim at the time the tort occurs, and the liability in unliquidated because the extent of damages is uncertain

Statue of limitations

State laws setting time limit for bringing a lawsuit