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LESSON 9-2Quiz Review
ILLUSORY PROMISES
“Open ended” promises“Either” party can back out“No consideration” when created
DO ILLUSORY PROMISES HAVE CONSIDERATION?
No Consideration is needed once the promise becomes agreed to
Detriment taken on
TERMINATION CONTRACT
“1” sided illusory promise Only 1 side can end the agreement at any time
Used to get a new product sold
DETRIMENT
Taking on a responsibility that you would NOT have taken on unless a promise was made
Binds a promise
CONSIDERATION
Must be “Fair” not equalPresent in ALL binding agreements
RELEASE
Takes place once contract ends Obligations and duties end for both parties
Cannot sue because contract HAS been performed
Contract not cancelled, it ends
OUTPUT CONTRACT
Agreeing to purchase a companies TOTAL output or production
McDonalds- French fries
REQUIREMENTS CONTRACT
Agreeing to sell my product only to chosen companies
Microsoft
EXISTING DUTY
When a party negotiates something they are already supposed to do
PUBLIC VS. PRIVATE
Existing Public Duty means something is against the law and cannot be used as consideration
Existing Private Duty means something is already in the contract and cannot be used as consideration
OBLIGATION
When a party enters a contract, they must complete what they agree to
Ex) If I agree to mow your lawn for $40, I am under obligation
DUTY
Similar to obligation, as a duty is what I must do as per the agreement
Ex) If I borrow $1000 and agree to pay $100 a month, my duty is what I agree
LIQUIDATED DEBT
Parties “agree” a debt exists and to its amount
Ex) I get my car loan bill in mail and decide the amount being asked for payment is correct
UN-LIQUIDATED DEBT
Parties “Disagree” a debt exists and to its amount
Ex) I get my electric bill and know I owe something, but not the amount being asked for
ACCORD AND SATISFACTION
Agreeing to accept less than the full amount owed in exchange to cancel the rest of the debt
Promise NOT to sue
Questions?