1. LESSON 9-2
Quiz Review

2. Illusory Promises “Open ended” promises “Either” party can back out
“No consideration” when created
Illusory Promises

3. Do illusory promises have consideration?No
Consideration is needed once the promise becomes agreed to
Detriment taken on
Do illusory promises have consideration?

4. Termination contract “1” sided illusory promise
Only 1 side can end the agreement at any time
Used to get a new product sold
Termination contract

5. Taking on a responsibility that you would NOT have taken on unless a promise was made
Binds a promise
DETRIMENT

6. consideration Must be “Fair” not equal
Present in ALL binding agreements
consideration

7. 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
release

8. Agreeing to purchase a companies TOTAL output or production
McDonalds- French fries
Output contract

9. requirements contract
Agreeing to sell my product only to chosen companies
Microsoft
requirements contract

10. When a party negotiates something they are already supposed to do
Existing duty

11. 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
Public vs. Private

12. 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
Obligation

13. 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
Duty

14. 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
Liquidated debt

15. 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
Un-Liquidated debt

16. 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
Accord and satisfaction

17. Questions?