Business Law - Chp. 8: Consideration

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

• consideration

• forbearance

• promisor

• legal value

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

• requirements contract

  
  

• accord and satisfaction

  
  

• legal value

• release

Voluntary transfer of ownership without consideration

• release

• donor

• forbearance

• gift

Refraining from doing what one has a right to do

• forbearance

• consideration

• legal value

• donee

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

• output contract

• nominal consideration

• legal value

• requirements contract

Debt for which the parties agree that the debt exists and on the amount of the debt

• liquidated debt

• release

• accord and satisfaction

• promissory estoppel

Enforcement of a promise to avoid injustice by denying to the promisor the defense of lack of consideration

• forbearance

• accord and satisfaction

• promissory estoppel

• gift

Person giving a gift

• donor

• donee

Person receiving a gift

• donor

• donee

Person who gives the promise or action in exchange for the promise or action of another

• promisor

• promisee