Business Law Chapter 8-1 Vocabulary Terms

What a person demands and generally must receive in order to make his or her promise legally binding.

• Forbearance

• Donor

• consideration

• Gift

A voluntary transfer of ownership without consideration.

• Gift

• Donor

• Consideration

• Forbearance

The person giving a gift.

• Donor

• Promisor

• Legal Value

• Promise

A person receiving a gift

• Donee

• Donor

• Forbearance

• Promisor

Refraining from doing what one has a right to do.

• Donor

• Donee

• Promisor

• Forbearance

A person who gives the promise or action in exchange for the promise or action of another.

• Legal Value

• Promisee

• Promisor

• Nominal Consideration

A person to whom the promise or action is given in exchange for the other person’s promise or action.

• Gift

• Promisee

• Promisor

• Donor

Change in the legal position of a party as a result of a contract.

• Consideration

• Legal Value

• Donor

• Value

Token amount identified in a written contract when parties either cannot or do not wish to state the amount precisely.

• Consideration

• Nominal Consideration

• Donee

• Donor