Business Law Chapter 12

Front 1

Promisee

Back 1

person to whom a promise is made to

Front 2

Promisor

Back 2

person who makes a promise to another, a person who promises

Front 3

Consideration

Back 3

requires a promisee to pay the price the promisor asked for in order to gain the right to enforce the promisors promise

Front 4

Legal value

Back 4

an act or promise. promisee does or agrees to do something he or she had no prior legal duty to do in exchange for the promisors promise

Front 5

Equitable remedies

Back 5

seek to enfore grossly inadequate bargains on the grounds that such persons are not entitled to the special treatment

Front 6

Contractual

Back 6

these cases usually occur when the parties attempt to modify an exisiting contract but no new consideration is furnished to support the agreement to modify

Front 7

Unforeseeable difficulties

Back 7

court will enforce modification that is not supported by new consideration

Front 8

Liquidated debt

Back 8

where the exact amount of the debt is known. one that is due and certain, no dispute about the exitence or the amount of the debt

Front 9

Unliquidated

Back 9

where the exact amount is not known. honest dispute about the existence or amount of a debt

Front 10

Accord and satisfaction

Back 10

majority view at common law

Front 11

Compositions

Back 11

agreements between a debtor and two or more creditors who agree to accept a stated percentage of their liquidated

Front 12

Past consideration

Back 12

where the same consideration has already been rendered there is generally no contract

Front 13

Moral obligations

Back 13

promises made by a promisor to pay for board and lodging previously provided to a needy relative or close friend, promise to pay debt

Front 14

Forbearance

Back 14

good faith belief that a person has a valid claim

Front 15

Mutuality of obligation

Back 15

must be real promises on each side

Front 16

Illusory promise

Back 16

allows the promiseor to decide whether or not to perform the promise