Business Law Text and Cases
Chapter 12
Legal Value * Promise to do something that one has no PRIOR legal duty to do. * A performance of an action that one is not obligated to do * Refraining from an action that one has a legal right to do (forbearance)
Rescission- the opposite of forming a contract, and bring the parties to the positions they occupied before the contract was made
Past consideration- no consideration or a promise to give another something of value in return for goods or services rendered and delivered in the past
Accord and satisfaction- the settlement of a debt by paying less than the amount demanded in exchange for extinguishing the debt
Liquidated debt- one who amount was fixed, agreed on, settled, or determined.
Release- a contract in which one party forfeits the right to pursue a legal claim against the other party
Covenant not to sue- party who had a cause of action at the time of making it, and by which he agrees not to sue the party liable to such action
Exceptions to the Consideration Requirement * Promises that induce reliance under the doctrine of promissory estoppel * Promises to pay dabts that are barred by a statute of limitations * Promises to make charitable contributions
Promissory estoppel- a person who has reasonably relied on the promise of another may be able to obtain some measure of recovery.
Requirements to make a claim 1. Must be a clear and definite promise 2. The promisor should have expected that the promisee would rely on the promise 3. Promisee reasonably relied on the promise by acting or refraining from some act 4. Promisee reliance was definite and resulted in harm or damage 5. Enforcement of the promise is necessary to avoid lack of fairness
Chapter 13
Minors
Age of majority- when a person is no longer a minor, for contractual purposes it is 18 years old
Emancipation- occurs when a childs parent or legal guardian takes away the legal right to exercise control over the child
Legal Value * Promise to do something that one has no PRIOR legal duty to do. * A performance of an action that one is not obligated to do * Refraining from an action that one has a legal right to do (forbearance)
Rescission- the opposite of forming a contract, and bring the parties to the positions they occupied before the contract was made
Past consideration- no consideration or a promise to give another something of value in return for goods or services rendered and delivered in the past
Accord and satisfaction- the settlement of a debt by paying less than the amount demanded in exchange for extinguishing the debt
Liquidated debt- one who amount was fixed, agreed on, settled, or determined.
Release- a contract in which one party forfeits the right to pursue a legal claim against the other party
Covenant not to sue- party who had a cause of action at the time of making it, and by which he agrees not to sue the party liable to such action
Exceptions to the Consideration Requirement * Promises that induce reliance under the doctrine of promissory estoppel * Promises to pay dabts that are barred by a statute of limitations * Promises to make charitable contributions
Promissory estoppel- a person who has reasonably relied on the promise of another may be able to obtain some measure of recovery.
Requirements to make a claim 1. Must be a clear and definite promise 2. The promisor should have expected that the promisee would rely on the promise 3. Promisee reasonably relied on the promise by acting or refraining from some act 4. Promisee reliance was definite and resulted in harm or damage 5. Enforcement of the promise is necessary to avoid lack of fairness
Chapter 13
Minors
Age of majority- when a person is no longer a minor, for contractual purposes it is 18 years old
Emancipation- occurs when a childs parent or legal guardian takes away the legal right to exercise control over the child