Term
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Definition
| A manifestation of intent to perform an act or refrain from acting in such a way, that would justify a promisee in understanding that a commitment had been made. |
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Term
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Definition
| A performance or a promise that is bargained for and sought after by the promisor in exchange for his promise or permormance and is given by the promisee in exchange for that promise |
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Definition
| A promise that is made with no intention by one of the parties to actually perform. Ex: 'value received' |
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Definition
| In name only. Form of a consideration, but not the substance. Ex. the One Cent. You can tell by looking at intent |
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Definition
Mere inadequecy of consideration will will not alone void a K. Batsakis.
If the requirment of consideration is met there is not additional requirment of
1. any gain or advantage to promisor or any detriment to the promisee
2.equivlence in value exchanged or
mutuality of obligation |
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Term
| Ways to find bad consideration |
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Definition
Nominal
False
Illusory
Gift-affection
Moral
Past
Social Promise |
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Term
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Definition
| If the promise doesn't limit one parties fututre course of action. Future freedom of choice needs to be limited. Restatement 77: It's not valid consideration if the promisor or promisee reserves a choice of alternative options. The Promise if NOT Valid if both parties are bound. Ex. 10 day notice was not illusory because it limited their future choice. Good faith is seen as not illusory. UCC 2-306. best efforts clause. Illusory: Buy as much or as little wood as they wanted. Coca-Cola ex too. Implied not illusory-Lady Duff ex |
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Term
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Definition
Promise for something already performed. Shnell. 4 exceptions to past consideration:
Bankruptcy, Infancy, SOF debt, and MORAL OBLIGATION. Webb, who jumped in front at work gets it, but not for good samaritan |
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Term
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Definition
| Giving up legal right to do something is valid consideration. Hamer v. Sidway giving up right to smoke and have fun. Consideration does not always mean that one party is profiting. |
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Term
| Reasons not enforce a contract despite there being consideration |
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Definition
| Within the Statute of Frauds, Unconcionable, economic duress. Contract in the HOME. PUBLIC POLICY CONCERNS |
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Term
| Reasons to enforce a contract although NO consideration |
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Definition
| Seal, Promisory Estoppel, state statute(PA), Past moral obligation |
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Term
| Within the Statute of Frauds-MYLEGS |
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Definition
M-Marraige
Y-Cannot be perfomed within one year
L-Sale of LAND
E-Executor of an estate
G-Sale of Goods exceeding $500 or more
S-Surety of a debt |
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Term
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Definition
| Does the contract shock the courts conscience? At the time that te contract was made. UCC 2-302 talks about it to prevent unfair surprise. A new contract (NOVOTION) will not make up for original unconcionable K. Two Wheel is unconcionability by statute-price gauging heaters |
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Term
| Procedural Unconscionability |
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Definition
| Unfair bargaining power of one party over another. Absense of meaningful choice and unfair surprise. Ex's: Fine print, Kirby Vacuums. Taking advantage of situation-like whale's oil or major hurricane. Must be more than hard bargain. Procedural alone won't be Uncon K |
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Term
| Substantative Unconscionability |
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Definition
| Evidence that the bargain as a whole was unfair. Look at the end of the deal. Look at actual monetary or physical result. Ex. heater sale for lien on the house. Just substanive can be enough. Two heater that were marked up to 60%. Batsakis-$500 is not 2,000 drachma |
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Term
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Definition
| Any oral agreement that is not within the statute can be valid consideration. If it is an oral agreement within the statute and written it is ok. BUT, if it is oral within the statute it is not valid, unless it can be taken out of the statute by exception. |
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Term
| Promissory Estoppel- restatement 90 |
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Definition
| A promise which the promisor should reasonably excpect to induce action or forbearance by the promisor or a 3rd person, and the which does induce such action is binding if justice can only be served by enforcement. Reliance is induced by the promise. Ex. Girl who quits job because enticing retirement package. Mother moves to farm. No reliance if he decides to act before the promise-'take care of you' |
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Term
| Output and requirment K's |
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Definition
Output K- I will buy everything that you produce
Requiment K-Everything I need I will buy from you and only you |
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