Business Law Chapter 12

courts typically do not enforce a promise against the person who made it unless what?

the person to which the promise was made has taken on an obligation in exchange to the offer

what does consider require?

a promisee to undertake the obligation that the promisor asks for in order to gain the right to enforce the promisor’s promise

what are the two ways consideration can have legal value?

by agreeing to do something the person has no legal duty to do and by agreeing to refrain from something that the person has a legal right to do

what does it take for nominal consideration to be recognized by courts?

it was truly bargained for

what can gross inadequacy of consideration give rise to?

an interference of lack of capacity or consent

what grounds might a court chose refuse to grant equitable remedies to those who seek to enforce grossly inadequate bargains?

such people are not entitled to the special treatment equity affords

what are exceptions that cannot be considered consideration due to preexisting legal duties?

promises to not commit a crime, by public officials to perform official duties, to perform preexisting contractual duties

How does the UCC change the traditional rule in the case of modifying agreements?

contracts for the sale of goods need no consideration to be binding (2-209(1))

why is the promise to discharge a liquidated debt for part payment at/after due date unenforceable?

lack of consideration

what makes a debt liquidated?

due and certain

what makes a debt unliquidated?

a genuine dispute about the existence or amount of a debt

accord and satisfaction

the legal term for settling a disputed claim

under UCC 1-207, courts may allow collection of what?

remaining debt if checks marked “payment in full” are cashed with reservation

forbearance

when a person promises not to file another person’s lawsuit in exchange for a promise to pay a certain sum of money or give some other consideration

illusory promise

worded in a way that allows the promisor to decide whether or not to perform the promise, so the party is not really obligated

there is valid consideration if? (4 things)

a bargained-for exchange, of a promise/act or forbearance, that had legal value, or a recognized exception