1. Define consideration.
2. What is "legal value"?
3. What is the second element of consideration according to the text?
4. Brief Hamer v. Sidway.
5. Describe what accord and satisfaction.
6. List the requirements to establish promissory estoppel (5).
7. Define contractual capacity.
8. What is one of the exceptions to a minor's right to disaffirm?
9. What does ratification mean in contract law?
10. Describe three contract types that may be contrary to statute or public policy.
11. When is a contract unconscionable?
12. What is an adhesion contract?
13. What are exculpatory clauses?
14. Brief Speedway SuperAmerica v. Erwin.
15. What does justifiable ignorance of the facts mean in contract law?
16. What is a severable contract?
17. What does duress in contract law mean?
~Faith
ReplyDeleteChapter 11
1. Generally, the value given in return for a promise; involves two elements – the giving of something of legally sufficient value and a bargained – for exchange. The consideration must result in a detriment to the promise or a benefit to the promisor.
2. Something of legally sufficient value
3. That it must provide the basis for the bargain struck between the contracting parties
4. The Uncle promised that he would give his nephew 5,000 dollars if he did not drink, use tobacco, and play billiards till he was 21. When he turned 21 he wrote his uncle and he told him that he would have the money put in his account and that is where it sat for the next 12 years. When the uncle died the executor of the estate refused to pay the 5,000 dollars. The executive said that he would not give the nephew the money because there was not enough support to show that a contract existed. But the court ruled in the nephews favor because the nephew acted in good faith, he trusted that his uncle would give him the 5,000 dollars.
5. A common means of settling a disputed claim, whereby a debtor offers to pay a lesser amount then the creditor purports to be owed. The creditor’s acceptance of the offer creates an accord (agreement), and when the accord is executed, satisfaction occurs.
6. You could get something because someone trusted you would do something, you have to show that you have relied on that person.
a. There must be a clear and definite promise.
b. The promisor should have expected that the promise would rely on the promise.
c. The promise reasonably relied on the promise by acting or refraining from some act.
d. The promisee’s reliance was definite and resulted in substantial detriment.
e. Enforcement of the promise is necessary to avoid injustice.
7. The threshold mental capacity required by law for a party who enters into a contract to be bound by that contract.
8. The only exception is when you need food or cloths, these are items of necessity
9. The act of accepting and giving legal force to an obligation that previously was not enforceable.
10. Contract to commit a crime, Contracts in restraint of trade, and Gambling.
11. When something is just way grossly unfair as to be void of conscience.
12. A “standard-form” contract, such as that between a large retailer and a consumer, in which the stronger party dictates the terms.
13. A clause that releases a contractual party from liability in the event of monetary or physical injury, no matter who is at fault.
14. Speedway hired Erwin as a general contract, they signed a 5 year contract with reserved rights to end at any time. The contract also had a indemnification clause which said that Speedway was not responsibility if Erwin got hurt on the job. Erwin got hurt but Speedway said they would not pay for it. The court ruled in Erwin’s favor because they said he had the education of just 8th grade and Speedway was a big corporation.
15. You are entitled to something because you are innocent. When one of the parties to a contract is relatively innocent, that party can often recover any benefits conferred in a partially executed contract.