Business Law Ch 15

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  1. accord and satisfaction
    An arrangement between contracting parties whereby one of the parties substitutes a different performance for his or her original duty under the contract. The promise to perform the new duty is the accord, and the actual performance of that new duty is the satisfaction.
  2. consideration
    The bargained-for exchange; what each party gets in exchange for his or her promise under a contract.
  3. illusory promise
    A situation in which a party appears to commit to something but really has not committed to anything. It is not a promise and thus not consideration.
  4. liquidated debt
    Debt for which there is no dispute between the parties about the fact that money is owed and the amount of money owed.
  5. output contract
    An agreement in which the seller guarantees to sell everything he or she produces to one buyer and no quantity is stated; valid under the UCC but not under common law.
  6. preexisting duty
    A promise to do something that one is already obligated to do. It is not considered valid consideration.
  7. promissory estoppel
    The legal enforcement of an otherwise unenforceable contract due to a party’s detrimental reliance on the contract.
  8. requirement contract
    A contract in which a buyer agrees to purchase all his or her goods from one seller and no quantity is stated; valid under the UCC but not under common law.
  9. unliquidated debt
    A debt for which the parties either dispute the fact that any money is owed or agree that some money is owed but dispute the amount.
Card Set
Business Law Ch 15
Business Law Ch 15
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